Committee: TourismSponsor: Waggoner
Analyst: Julie KnightDate: 02/09/2021


Senate Bill 138 as introduced would: (1) allow certain non-licensed wine manufacturers to file and pay the $250 initial and annual renewal fee for a direct shipper license from the Alcoholic Beverage Control Board (ABC), which would allow the licensee to ship up to 12 nine-liter cases of wine per year directly to Alabama residents who are at least 21 years of age for personal use; and (2) authorize the ABC Board to impose fines upon any person shipping wine directly to a resident without a license in amounts ranging from a maximum of $500 for a first violation up to a maximum of $6,000 for a third violation. These provisions will increase receipts to the State General Fund, by an undetermined amount dependent upon the number of direct wine shipper licenses issued and the number of and amount of administrative fines imposed for violating the provisions of this bill. However, this bill further provides that all license fees and administrative fines collected and deposited into the State General Fund shall be used to offset the costs of the ABC Board to regulate direct wine shippers. In addition, this bill requires direct wine shipper licensees to collect and properly remit state and local sales or use and excise taxes due on sales which could increase receipts to the Education Trust Fund, State General Fund, the Department of Human Resources, and counties and municipalities by an undetermined amount dependent upon the price of the wine sold and shipped by the manufacturers.

This bill further provides (1) that anyone who ships wine directly to residents without a permit is guilty of a Class C misdemeanor which could increase receipts to the State General Fund, county general funds, municipal general funds, and other funds to which court costs are deposited; and could increase the obligations of the State General Fund, district attorneys, and local jails by an undetermined amount dependent upon the number of persons charged with and convicted of the offenses provided by this bill and the penalties imposed; and (2) sets conditions and requirements for franchise agreements between supplier and wholesale distributors of wine in counties where regulations do not currently exist by local law.

 Del Marsh, Chairperson