SB316ENGROSSED
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SB316
KHZJHAA-2
By Senators Singleton, Bell
RFD: Fiscal Responsibility and Economic Development
First Read: 08-Apr-25
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First Read: 08-Apr-25
A BILL
TO BE ENTITLED
AN ACT
Relating to alcoholic beverages; to add Section
28-3A-6.5 to the Code of Alabama 1975, to require the
Alcoholic Beverage Control Board to issue an educational
tourism distillery license; to regulate retail sale of
alcoholic beverages by the licensee; to levy a tax on liquor
manufactured by the licensee; to provide for storage of liquor
manufactured by the licensee; to amend Section 28-3A-21, Code
of Alabama 1975, to set a license fee; and to amend Section
28-6A-2, Code of Alabama 1975, to provide for purchase of
table wine from a small farm winery by an educational tourism
distillery.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 28-3A-6.5 is added to the Code of
Alabama 1975, as follows:
§28-3A-6.5
(a)(1) Upon compliance by an applicant with this
section and this chapter and provided the operation shall be
in compliance with state and federal laws, rules, and
regulations, the Alabama Alcoholic Beverage Control Board may
issue an Educational Tourism Distillery license to any person,
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issue an Educational Tourism Distillery license to any person,
association, or corporation engaged in the producing,
bottling, manufacturing, distilling, rectifying, or
compounding of liquor upon payment of the license fee as
established in Section 28-3A-21.
(2) For the purposes of this section, an Educational
Tourism Distillery licensee must produce, bottle, manufacture,
distill, rectify, or compound 100,000 gallons or more of
liquor a year.
(3) For purposes of this section, the total gross sales
of an Educational Tourism Distillery licensee must be 50
percent or more from liquor products produced, bottled,
manufactured, distilled, rectified, or compounded on site.
(4) For purposes of this section, an Educational
Tourism Distillery licensee may export sales outside of the
State of Alabama.
(5) Any licensee operating under or in conjunction with
an Educational Tourism Distillery license shall be responsible
for ensuring compliance with all applicable laws and board
rules relating to the sale of alcohol.
(b) An Educational Tourism Distillery license
authorizes the licensee to do all of the following on the
premises pursuant to this section:
(1) Purchase other liquor and wine from the board, or
as authorized by the board; purchase table wine and beer from
any wholesale licensee of the board; and sell liquor, wine,
and beer dispensed from containers of any size, to include
draft beer, for on-premises consumption. The sale of alcoholic
beverages under this subdivision shall be confined to a
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beverages under this subdivision shall be confined to a
designated enclosed area comprising no fewer than 500 square
feet for service and consumption, within which patrons under
21 years of age are prohibited from entering. Any liquor
manufactured at the licensed premises may be sold for
on-premise consumption in this designated area, provided that
the total amount of liquor sold in a single tasting or
sampling flight does not exceed one and one-half ounces.
(2) Purchase other liquor and wine from the board, or
as authorized by the board; purchase table wine and beer from
any wholesale licensee of the board; and sell liquor, wine,
and beer dispensed from containers of any size, to include
draft beer, for on-premises consumption in a freestanding
separate structure on the licensed premises where the licensee
provides or serves food. Any liquor manufactured at the
licensed premises may be sold at retail for on-premises
consumption in the designated area.
(3) Purchase other liquor and wine from the board, or
as authorized by the board; purchase table wine and beer from
any wholesale licensee of the board; and sell liquor, wine,
and beer dispensed from containers of any size, to include
draft beer, for on-premises consumption at temporary or
permanently designated serving stations on the licensed
premises for special events such as receptions, parties, or
similar gatherings. A licensee shall post at each of its
special event serving stations at least one sign warning
customers that the sale of alcoholic beverages to patrons
under 21 years of age is strictly prohibited. Any liquor
manufactured at the licensed premises may be sold for
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manufactured at the licensed premises may be sold for
on-premises consumption in the designated serving stations.
(4) Sell at retail in a designated enclosed area which
shall be separate from all other designated areas on the
licensed premises, for off-premises consumption, liquor
manufactured at the licensed premises; provided, however,
liquor sold for off-premises consumption may not exceed four
and one-half liters per customer per day and shall be sealed,
labeled, packaged, and taxed in accordance with state and
federal laws and regulations.
(5) Must provide patrons with the opportunity to
participate in a guided tour of the distillery operations,
which tours must include an educational component in which an
in-person guide provides information to patrons regarding the
historic and scientific characteristics of the liquor
manufactured at the licensed premises. A licensee may offer a
tasting or sampling of liquor manufactured at the licensed
premises at the conclusion of each tour in a designated
enclosed area which shall be separate from all other
designated areas on the licensed premises, provided that the
total amount of liquor provided to each patron for such
tasting or sampling does not exceed one and one-half ounces.
The price of such tasting or sampling shall be included in the
price charged to patrons over 21 years of age for the guided
tour. No retail sales shall be authorized in the designated
area.
(c) An Educational Tourism Distillery licensee may
transfer liquor directly from a licensed manufacturer. For the
purposes of this subdivision, the licensee must have a 75
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purposes of this subdivision, the licensee must have a 75
percent ownership or control of the brand or product received
by the licensee.
(d) The licensed premises must contain a distillery
operation that encompasses no fewer than 5,000 square feet in
one or more structures.
(e) There is levied and assessed upon all liquor
manufactured on the premises that is dispensed or sold at
retail for on-premises or off-premises consumption, as well as
samplings and tastings consumed as provided in this section,
the mark up and the privilege or excise tax imposed on the
retail sale of liquor in a state liquor store, in the same
manner as if collected in a state liquor store. Taxes and
markup described in this subsection shall be remitted by the
licensee to the board. The respective mark up and taxes
collected will be distributed, respectively, in the same
manner as the mark up and taxes collected in an ABC liquor
store.
(f) The tax levied in subsection (e) shall be collected
by a return which shall be filed by the licensee with the
board postmarked not later than the last day of the month
following the month of production or sale of liquor, which
shall be accompanied by the remittance of the tax due. The
report shall include, but not be limited to, a consolidated
report of all liquor manufactured, sold, or otherwise consumed
on the licensed location. The report shall be in the form and
containing information as the board may prescribe.
(1) If a licensee fails to file any return required to
be filed with the board on or before the date prescribed
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be filed with the board on or before the date prescribed
therefor, including any written extension of time granted by
the board in advance, there shall be assessed as a penalty the
greater of 10 percent of any additional tax required to be
paid with the return or fifty dollars ($50).
(2) If a licensee fails to pay to the board the amount
of the tax due on a return required to be filed on or before
the date prescribed for payment of the tax, including any
written extension of time granted by the board in advance,
there shall be added as a penalty 10 percent of the unpaid
amount due on the return.
(3) Interest shall be added to any tax due to the board
which is not paid by the due date, from the due date of the
tax, computed based on the underpayment rate established by
the Secretary of the Treasury under the authority of 26 U.S.C.
§ 6621.
(g) An Educational Tourism Distillery licensee shall
not sell any alcoholic beverages direct to any retailer.
(h) An Educational Tourism Distillery licensee shall
file with the board, prior to making any sales in Alabama, a
list of its labels to be sold in Alabama and shall file with
the board its federal certificate of label approvals or its
certificates of exemption as required by the U.S. Treasury
Department. All liquors whose labels have not been registered
as herein provided for shall be considered contraband and may
be seized by the board or its agents, or any peace officer of
the State of Alabama without a warrant and the goods shall be
delivered to the board and disposed of as provided by law.
(i)(1) An Educational Tourism Distillery licensee shall
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(i)(1) An Educational Tourism Distillery licensee shall
keep at its principal place of business within the state daily
permanent records that show the quantities of raw materials
received and used in the manufacture of liquor, and the
quantities of alcoholic beverages manufactured and stored, the
sale of alcoholic beverages, the quantities of alcoholic
beverages stored for hire or transported for hire by or for
the licensee, and the names and addresses of the purchasers or
other recipients thereof.
(2) An Educational Tourism Distillery licensee shall
keep and maintain for a minimum of three years all records
required to be kept and maintained at the licensed location by
manufacturer, wholesaler, and retailer licensees for the tax
so levied except that the Educational Tourism Distillery is
not required to maintain name, address, or other personal
demographic information for sales as provided in subdivision
(1).
(j) An Educational Tourism Distillery Licensee shall be
subject to inspection by members of the board or by
individuals authorized and designated by the board at any time
of the day or night as they may deem necessary for the
detection of violations of this chapter, of any law, or of the
rules of the board, or for the purpose of ascertaining the
correctness of the records required to be kept by the
licensees. The books and records of licensees, at all times,
shall be open to inspection by members of the board or by
individuals authorized and designated by the board. Members of
the board and its authorized agents, without hindrance, may
enter any place that is subject to inspection hereunder or any
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enter any place that is subject to inspection hereunder or any
place where records are kept for the purpose of making
inspections and making transcripts thereof.
(k) An Educational Tourism Distillery Licensee may be
certified in the Responsible Vendor Program.
(l) A licensee shall post in each of its locations
where alcoholic beverages are served at least one sign warning
customers that the sale of alcoholic beverages to patrons
under 21 years of age is strictly prohibited. The sign shall
be posted at a point of sale or in any other location that is
visible to customers and employees.
(m) An Educational Tourism Distillery licensee shall
maintain a surety bond of not less than twenty-five thousand
dollars ($25,000), payable to the Alabama Alcoholic Beverage
Control Board for any outstanding fine, penalty, or tax.
(n) Upon approval of the Alabama Alcoholic Beverage
Control Board, a licensee shall be allowed one off-premises
manufacturer extension location for the exclusive storage of
finished and unfinished goods pursuant to this section:
(1) A licensee must provide documentation indicating
approval from the Alcohol and Tobacco Tax and Trade Bureau for
the extension. Prior to a manufacturer extension being issued
in Alabama, the licensee must provide all of the following:
a. Approval of the manufacturer extension from the
Alcohol and Tobacco Tax and Trade Bureau.
b. A lease, deed, or other document showing control of
the property.
c. A current, valid Educational Tourism Distillery
license from the board.
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license from the board.
(2) The application for a manufacturing extension must
be approved by the board prior to its use.
(3) The manufacturer extension premises must be secured
at all times.
(4) The manufacturer extension premises cannot be used
for the exportation of products nor any form of distribution
of products within Alabama.
(5) Except where otherwise prohibited by federal or
state statute, a licensee may obtain a manufacturer extension
for a building located 10 miles or less from the original
licensed premises. A manufacturer extension will be prohibited
outside the State of Alabama.
(6) Authorized representatives of the board or
commissioned law enforcement officers of the state, county, or
municipality in which the manufacturer extension premises is
located shall be allowed to enter and search, without a
warrant, the manufacturer extension premises or any building
owned or occupied by the licensee in connection therewith,
adjoining, adjacent to, or part of the curtilage thereof,
whether used as a private dwelling or not, at any time.
(7) No sales, sampling, or tastings of any alcoholic
beverage shall be allowed at the manufacturer extension
premises.
(8) A licensee under this section that is issued a
manufacturer extension must maintain all records related to
the disposition of the finished or unfinished goods stored in
the extension, as applicable.
(9) The finished and unfinished goods may be
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(9) The finished and unfinished goods may be
transported in bond from the licensed premises to the
manufacturer extension location for storage, as applicable.
Transportation shall be made by the licensee or employee of
the same in a vehicle bearing signage on each side identifying
the licensee. Included in the transportation vehicle shall be
a current copy of the manufacturer extension and the bill of
lading or other documentary evidence of ownership of the
product on board.
Section 2. Section 28-3A-21, Code of Alabama 1975, is
amended to read as follows:
"§28-3A-21
(a) The following annual license fees are levied and
prescribed for licenses issued and renewed by the board
pursuant to the authority contained in this chapter:
(1) Manufacturer license, license fee of five hundred
dollars ($500).
(2) Importer license, license fee of five hundred
dollars ($500).
(3) Liquor wholesale license, license fee of five
hundred dollars ($500).
(4) WholesalerBeer wholesaler license, beer license fee
of five hundred fifty dollars ($550) or wine license fee of
five hundred fifty dollars ($550); license fee for beer and
wine of seven hundred fifty dollars ($750); plus two hundred
dollars ($200) for each warehouse in addition to the principal
warehouse.
(5) Wine wholesaler license, license fee of five
hundred fifty dollars ($550) plus two hundred dollars ($200)
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hundred fifty dollars ($550) plus two hundred dollars ($200)
for each warehouse in addition to the principal warehouse.
(5)(6) Warehouse license, license fee of two hundred
dollars ($200).
(6)(7) Lounge retail liquor license, license fee of
three hundred dollars ($300).
(7)(8) Restaurant retail liquor license, license fee of
three hundred dollars ($300).
(8)(9) Club liquor license, Class I license fee of
three hundred dollars ($300), Class II license fee of seven
hundred fifty dollars ($750).
(9)(10) Retail table wine license for off-premises
consumption, license fee of one hundred fifty dollars ($150).
(10)(11) Retail table wine license for on-premises and
off-premises consumption, license fee of one hundred fifty
dollars ($150).
(11)(12) Retail beer license for on-premises and
off-premises consumption, license fee of one hundred fifty
dollars ($150).
(12)(13) Retail beer license for off-premises
consumption, license fee of one hundred fifty dollars ($150).
(13)(14) Retail common carrier liquor license, license
fee of one hundred fifty dollars ($150) for each railroad,
airline, bus line, ship line, vessel or other common carrier
entity with a vehicle passenger capacity of at least 10
people.
(14)(15) Special retail license, license fee of one
hundred dollars ($100) for 30 days or less; license fee of two
hundred fifty dollars ($250) for more than 30 days.
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hundred fifty dollars ($250) for more than 30 days.
(15)(16) Special events retail license, license fee of
one hundred fifty dollars ($150).
(17) Educational tourism distillery license, license
fee of one thousand dollars ($1,000).
(b) The license fees levied and fixed by this section
shall be paid before the license is issued or renewed.
(c) In addition to the foregoing filing fee and license
taxes or fees, any county or municipality in which the sale of
alcoholic beverages is permitted shall be authorized to fix
and levy privileges or license taxes on any of the foregoing
licenses located or operated therein, conditioned on a permit
or license being issued by the board.
(d) No county or municipality shall have any authority
to levy a license or tax of any nature on any liquor store."
Section 3. Section 28-6A-2, Code of Alabama 1975, is
amended to read as follows:
"§28-6A-2
(a)(1) For the purposes of this section, the term
"table wine" includes mead.
(2) For the purposes of this section, a "small farm
winery" means a manufacturer of table wine licensed by the
Alcoholic Beverage Control Board, which produces fewer than
50,000 gallons of table wine per year, and meets one of the
following criteria:
a. Produces at least 50 percent of its total production
of table wine from fruit that is grown, or honey that is
harvested, in this state.
b. Produces all of its total production of table wine
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b. Produces all of its total production of table wine
within this state and owns not less than eight acres of
vineyards in this state.
(3) For the purposes of this section, table wine that
has been produced by a manufacturer, or a subsidiary or
affiliate or other related entity of the manufacturer, and
table wine produced exclusively for the winery by another
manufacturer shall be considered to be produced by the winery
and shall be included in the 50,000 gallon limit provided in
subdivision (2).
(b) A catastrophic loss to produce grown in this state,
including, but not limited to, one caused by drought or frost,
may not disqualify a small farm winery if the winery qualified
as a small farm winery prior to the catastrophic loss.
(c) Notwithstanding any provision of this title to the
contrary, a small farm winery may do all of the following:
(1) Sell its table wines produced on its licensed
premises directly from its licensed premises at retail to
consumers physically present at the licensed premises, either
for on-premises or off-premises consumption, for personal use
and not for resale; provided, the winery collects and remits
all state and local sales or use taxes and excise taxes due on
the sale of table wine to consumers, packages and labels the
wine in accordance with state and federal law, and reports its
annual production of table wine to the board.
(2)a. Either of the following, provided that
transportation of wine under this subdivision is made by the
winery's employees in a vehicle owned or leased by the winery:
1. Sell and transport up to 10,000 gallons of its table
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1. Sell and transport up to 10,000 gallons of its table
wine produced on its licensed premises directly to licensed
retailers each year.
2. Sell and transport up to 20,000 gallons of its table
wine produced on its licensed premises directly to licensed
retailers each year, if the winery provides to the board proof
that the winery's table wine has been declined to be
distributed by two separate wholesalers of table wine. If the
winery's table wine has been accepted for distribution by any
wholesaler of table wine, then the winery may not sell its
table wine directly to retailers under this paragraph.
b. For purposes of this subdivision, "retailers"
include those that are licensed by the board for on-premises
consumption, for off-premises consumption, or for both.
c. If a winery sells and transports 20,000 total
gallons of table wine directly to retailers as provided in
this subdivision in any one year, that winery may not
subsequently sell and transport table wine directly to
retailers under this subdivision.
d. Notwithstanding any other provision of this section
to the contrary, a small farm winery may only sell and
transport table wine that has been approved by the board for
sale within the state and for which the small farm winery owns
the Certificate of Label Approval issued by the Alcohol and
Tobacco Tax and Trade Bureau.
(3) Provided that transportation of wine under this
subdivision is made by the winery's employees in a vehicle
owned or leased by the winery, sell and transport its table
wine to an educational tourism distillery licensed under this
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wine to an educational tourism distillery licensed under this
title solely for on-premises consumption at the educational
tourism distillery pursuant to law and board rules.
(d) A county or a municipality may not require a small
farm winery to pay any fees, including business licensure
fees, to make sales or deliveries under this section, or any
additional local tax other than the tax described in
subdivision (c)(1).
(e)(1) A small farm winery shall maintain records
verifying that the winery meets the qualifications under this
section, and shall provide those records to the board upon
request.
(2) A small farm winery shall report to the board each
month the amount of table wine sold directly to each licensed
retailer under this section.
(f) The board shall adopt rules to implement this
section."
Section 4. This act shall become effective on October
1, 2025.
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1, 2025.
Senate
Read for the first time and referred
to the Senate committee on Fiscal
Responsibility and Economic
Development
................08-Apr-25
Read for the second time and placed
on the calendar:
0 amendments
................09-Apr-25
Read for the third time and passed
as amended
Yeas 26
Nays 3
Abstains 0
................15-Apr-25
Patrick Harris,
Secretary.
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