HB 350

Currently, there is no specific license issued by the Alcoholic Beverage Control Board relating to direct shipping of limited quantities of wine to Alabama residents for their personal use

This bill would allow a currently licensed wine manufacturer to obtain a wine direct shipper permit from the Alcoholic Beverage Control Board to allow the permittee to ship limited quantities of wine directly to Alabama residents for their personal use

This bill would authorize delivery services approved by the board to deliver wine directly to residents

This bill would also provide that a person who ships wine directly to a resident without a permit is guilty of a Class C misdemeanor

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment

To provide for a wine direct shipper license; to amend Section 28-1-4, Code of Alabama 1975, and to add Section 28-3A-6.1 to the Code of Alabama 1975; to allow a currently licensed wine manufacturer to obtain a wine direct shipper permit from the Alcoholic Beverage Control Board to allow the permittee to ship limited quantities of wine directly to Alabama residents for their personal use; to provide for the permitting procedure; to provide restrictions and requirements on the direct shipment of wine; to provide for issuance and renewal fees for the wine direct shipper permit; to authorize delivery services to deliver wine to residents; to provide that the direct shipment of wine without a permit constitutes a Class C misdemeanor; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.

Section 1

Section 28-1-4, Code of Alabama 1975, is amended to read as follows:

§28-1-4.

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

(b) It shall be unlawful for common or permit carriers, operators of trucks, buses or other conveyances or out-of-state manufacturers or suppliers to make delivery of any alcoholic beverage from without the State of Alabama to any person, association or corporation within the state, except to the Alabama Alcoholic Beverage Control Board and to manufacturers, importers, wholesalers and warehouses licensed by the Alabama Alcoholic Beverage Control Board to receive the alcoholic beverages so delivered; provided, however, wine may be shipped to a resident who is at least 21 years of age in the state at the direction of a wine direct shipper permittee in accordance with Section 28-3A-6.1.

(c) Notwithstanding subsection (b), a delivery service may transport and deliver shipments of wine to a resident at the direction of a wine direct shipper permittee. The delivery service shall maintain in the vehicle or within the possession of the driver of the vehicle a bill of lading, consignment, or other documentary evidence of the cargo being transported.

(c)(d) Any violation of subsection (a) (b) of this section shall be a misdemeanor, punishable as provided in paragraph (1) of subsection (b) of Section 28-3A-25.

(d) All laws or parts of law which conflict or are inconsistent with this section are hereby repealed, provided, however, the provisions of Section 28-1-3 are excluded."

Section 2

Section 28A-3A-6.1 is added to the Code of Alabama 1975, to read as follows: §28-3A-6.1. (a) Any person currently licensed in this state as a wine manufacturer who obtains a wine direct shipper permit, as provided in this section, may ship annually up to 24 cases of wine, each case not exceeding nine liters of wine. The wine shall be shipped directly to a resident of Alabama who is at least 21 years of age for the resident's personal use and not for resale. (b) In order to receive a permit to ship wine to an Alabama resident, the applicant for a wine direct shipper permit shall do all of the following: (1) File an application with the Alcoholic Beverage Control Board. (2) Pay a filing fee of one hundred dollars ($100). (3) Provide to the board a true copy of its current manufacturer license issued in this state. (c) A wine direct shipper permittee: (1) May not ship more wine than is specified in subsection (a). (2) May not ship any wine to any premises licensed by the board. (3) Shall ensure that all containers of wine shipped directly to a resident in this state are conspicuously labeled with the words: "CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY." (4) If located outside of this state, shall report, at the direction of the board, the total amount of wine directly shipped to consumers in the state during the preceding calendar year. (5) Whether located within or outside of this state, collect and properly remit all state and local sales or use taxes and excise taxes due on sales to Alabama residents. (6) If located within this state, shall provide the Department of Revenue and the board any additional information deemed necessary beyond that already required for retail sales from the manufacturer's tasting room to ensure compliance with this section. (7) Shall permit the board or the Department of Revenue to perform an audit of the wine direct shipper permittee's records upon request. (8) Shall be deemed to have consented to the jurisdiction of the board or any law enforcement agency and the Alabama courts concerning enforcement of this section and any related laws or administrative rules. (d) A wine direct shipper permittee may renew its permit with the board by paying annually a renewal fee of fifty dollars ($50) and providing the board a true copy of its current manufacturer license issued in this state. (e) The board may promulgate rules pursuant to the Alabama Administrative Procedure Act to implement this section. (f) The board may enforce the requirements of this section to suspend or revoke a wine direct shipper permit by the same administrative proceedings that apply to alcoholic beverage licenses, and the board may accept payment of a fine in lieu of suspension or revocation, such payments to be determined by rule promulgated by the board. (g) Shipments of wine direct to consumers in Alabama from persons who do not possess a current wine direct shipper permit pursuant to this section are prohibited, and any person who knowingly makes, participates in, or transports such a shipment is guilty of a Class C misdemeanor.

Section 3

Although this bill would have as its purpose or effect the requirement of a new or increased expenditure of local funds, the bill is excluded from further requirements and application under Amendment 621, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, because the bill defines a new crime or amends the definition of an existing crime.

Section 4

This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.