115987-1:n:01/05/2010:JRC/ll LRS2009-5403

By Representative Robinson (O)
RFD Tourism and Travel
Rd 1 21-JAN-10

SYNOPSIS:Under existing law, alcohol manufacturers located in Alabama that produce beer are not permitted to sell any alcohol on-premises. The only exception is a special class of beer manufacturers called brewpubs, permitted under the Alabama Brewpub Act, which may sell beer brewed on-premises to consumers for on-premises consumption only.
This bill would eliminate the distinction between beer manufacturers and brewpubs, permitting any beer manufacturer located in Alabama to sell alcohol on-premises.


To amend Chapter 4A of Title 28, Sections 28-4A-1 to 28-4A-6, inclusive, Code of Alabama 1975, known as the Alabama Brewpub Act, to eliminate the distinction between beer manufacturer and brewpub, to allow all beer manufacturers to sell alcohol on-premises.


Section 1. Sections 28-4A-1 to 28-4A-6, inclusive, Code of Alabama 1975, are amended to read as follows:


This chapter shall be known as and may be cited as the "Alabama Brewpub Brewery Modernization Act."


"(a) The words and phrases used in this chapter shall have the meanings ascribed to them in Section 28-3-1, and any acts amendatory thereof, supplementary thereto or substituted therefor.

"(b) The following words or phrases, whenever they appear in this chapter, unless the context clearly indicates otherwise, shall have the meaning ascribed to them in this subsection:

"(1) BREWPUB BREWERY. Any premises upon which beer is manufactured or brewed, subject to the barrel production limitation prescribed in this chapter, for consumption exclusively on the premises.

"(2) PREMISES. Any building, structure or portion thereof designated as a historic building and site as defined in Section 40-8-1, in which is located the operations of a brewpub brewery.


"(a) In addition to the licenses authorized to A brewery must obtain an alcohol manufacturer's license which shall be issued and renewed by the board pursuant to the Alcoholic Beverage Licensing Code codified as Chapter 3A, Title 28, the board, upon applicant's compliance with the provisions of this chapter and with Chapter 3A, Title 28, and the regulations made thereunder, is authorized to issue to a qualified applicant a brewpub license which shall authorize the licensee to manufacture or brew beer in a quantity not to exceed 10,000 barrels in any one year and to sell such beer in unpackaged form at retail for on-premises consumption only, and to and abide by all regulations and fees associated with that license. Beer which is manufactured in Alabama may be sold directly at retail by the licensed manufacturer on the manufacturer's premises, for on-premises consumption only, or it may be sold to a licensed wholesaler. A brewery may purchase beer in original unopened containers from licensed wholesalers and to sell such beer at retail for on-premises consumption only, in a room or rooms or place on the licensed premises at all times accessible to the use and accommodation of the general public, subject to the following conditions:

"(1) The brewpub premises must be located in an historic building or site as defined in Section 40-8-1, in a wet county or wet municipality, in which county beer was brewed for public consumption prior to the ratification of the Eighteenth Amendment to the U.S. Constitution in 1919.

"(2)(1) The proposed location of the premises shall not, at the time of the original application, be prohibited by a valid zoning ordinance or other ordinance in the valid exercise of police power by the governing body of the municipality or county in which the brewpub brewery is located.

"(3) Beer brewed by the brewpub licensee shall not be possessed, sold or dispensed except on the premises where brewed, and shall not be packaged or contained in other than barrels from which the beer is to be dispensed on the premises for consumption on the premises.

"(4)(2) The brewpub must brewery may contain and operate a restaurant with a seating capacity of not less than 80.

"(b) The annual license fee levied and prescribed for a license as a brewpub issued or renewed by the board pursuant to the authority of this chapter is $1,000. A brewery may offer tours of its facility to the general public and may provide free samples to be consumed on-premises as a way to promote its products.

"(c) Except as provided in this subsection, the provisions of Title 28 shall be applicable. The provisions of Section 28-3-4 and subsection (b) of Section 28-3A-6, shall not be applicable with regard to beer brewed by the brewpub brewery and sold and dispensed on the brewpub brewery premises. In all other respects, Section 28-3-4 and Section 28-3A-6(b) shall be applicable.


"(a) In addition to the licenses provided for by this chapter and any county or municipal license, for any on-premises retail sales of beer manufactured by the brewery there is levied on the brewpub brewery the privilege or excise taxes imposed by Sections 28-3-184 and 28-3-190. Every brewpub For any on-premises retail sales of beer manufactured by the brewery, every brewery licensee shall file the tax returns, pay the taxes and perform all obligations imposed on wholesalers at the times and places set forth therein. It shall be unlawful for any brewpub brewery licensee who is required to pay the taxes so imposed in the first instance to fail or refuse to add to the sales price and collect from the purchaser the required amount of tax, it being the intent and purpose of this provision that each of the taxes levied is in fact a tax on the consumer, with the brewpub brewery licensee who pays the tax in the first instance acting merely as an agent of the state for the collection and payment of the tax levied by Section 28-3-184 and as an agent of the county or municipality for the collection and payment of the tax levied by Section 28-3-190.

"(b) The brewpub For on-premises retail sales of beer manufactured by the brewery, the brewery shall be required to keep and maintain all of the records otherwise required to be kept and maintained by manufacturer, wholesaler, and retailer licensees.

"(c) The brewpub If a brewery chooses to limit sales of beer it manufactures exclusively to on-premises retail sales, the brewery shall appoint a licensed wholesaler designee in order to preserve Section 28-9-1. In addition, if all sales of the brewery's beer are limited to on-premises retail sales, the brewpub brewery shall be exempt from Sections 28-9-3 through 28-9-11. Otherwise, if a brewery chooses to sell the beer it manufactures to a licensed wholesaler, all provisions of Chapter 9 of Title 28 shall apply.

"(d) A brewery may pay a fee to the board of one hundred dollars ($100) to obtain a special events permit valid for a period not to exceed 48 hours. This special events permit will allow the brewery to sell beer it manufactures directly to a special events retail licensee for the purpose of promoting the brewery's products at festivals and other special events.

"(e) A brewery may pay a fee to the board of one hundred dollars ($100) to obtain an on-premises special events permit valid for a period not to exceed 48 hours. This on-premises special events permit will allow the licensed manufacturer to sell beer directly at retail on the manufacturer's premises, for off-premises consumption. On-premises special events permits may not be issued more than once per calendar year per brewery.


"A violation of any provision of this chapter shall constitute an unlawful act. A finding by the board that the brewpub brewery licensee is guilty of violating any provision of this chapter shall effect an automatic revocation of the license.


"The Legislature finds that it is in the best interest of the public welfare of the State of Alabama to preserve and redevelop the original "downtown" municipal areas of this state and to further promote the preservation and redevelopment of historic buildings and sites. The Legislature finds that an effective way of facilitating the urban redevelopment program and the preservation of historic buildings and sites is by creating a single exception to the existing alcoholic beverage laws to authorize and permit the establishment of brewpubs located in historic buildings and sites in urban redevelopment areas of those municipalities located within counties where the brewing of beer for consumption by the public had historically been located. The policy and intent of the Legislature in the enactment of this chapter is to promote the public welfare by further regulating and controlling alcoholic beverage transactions in Alabama under the control and supervision of the Alabama Alcoholic Beverage Control Board to accomplish this legislative purpose set forth herein. promote the growth of the state's brewing industry. Eighteen years after the passage of the Alabama Brewpub Act, only two brewpubs are currently in operation in the state, and there are only two breweries distributing beer via wholesalers. These beer producers are subjected to extensive regulations and limitations not imposed on Alabama wineries. In the interest of justice and promoting local industry in the state, the Legislature finds an effective way to assist these small businesses is to grant them some of the same privileges enjoyed by the state's wineries."

Section 2. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Alcoholic Beverages
Popular Names
Business and Commerce
Code Amended