HB542 Alabama 2019 Session

Summary

Primary Sponsor

Becky Nordgren

Republican

Session

Regular Session 2019

Title

Alcoholic beverages, authorize breweries, wineries, and distilleries to sell and dispense alcoholic beverages from other manufacturers under common ownership at tasting rooms, Secs. 28-3-1, 28-3A-6 am'd.

Summary

HB 542 would allow Alabama breweries, wineries, and distilleries to dispense and sell in-state beverages from other manufacturers under common ownership at their on-site tasting rooms, and would expand off-site tasting and limited retail sales under defined limits.

What This Bill Does

The bill defines 'common ownership' and lets a licensed manufacturer sell or dispense beverages produced in Alabama by another manufacturer under common ownership at its on-site tasting room. It also creates rules for on-site tastings of such beverages and expands off-site tasting and retail opportunities for beer, liquor, and table wine from common-owned manufacturers, with production caps, per‑customer limits, and labeling/Tax requirements. Additionally, it authorizes off-site tasting roomPermits for wine and allows donations of beer or wine to nonprofit events, all while maintaining required record-keeping and tax reporting. The changes would take effect on the first day of the third month after the bill becomes law.

Who It Affects

• Licensed manufacturers (breweries, wineries, distilleries, and other alcoholic beverage producers) under Alabama law who are part of a common-ownership group and may dispense, sell, or conduct tastings of beverages from other common-owned manufacturers at their premises or off-site facilities, subject to rules and reporting.
• Consumers and nonprofit organizations, including event organizers, who may encounter more beverage options at tasting rooms and off-site locations and may participate in donation programs, subject to per-customer and regulatory limits.

Key Provisions

• Defines 'COMMON OWNERSHIP' as two manufacturers where a single entity holds a majority financial interest and majority control of both.
• Allows a licensed manufacturer to dispense and sell, at its on-site tasting room, alcoholic beverages produced in Alabama by another manufacturer under common ownership.
• Permits on-site tastings of beverages from common-owned manufacturers and requires these beverages to remain on the licensed premises during tastings.
• Beer: allows off-site retail sale by small-beer manufacturers (less than 60,000 barrels/year) from common-owned partners, with a per-customer limit of 288 ounces per day and requirements to seal, label, package, and tax.
• Liquor: allows off-site retail sale of liquor from common-owned manufacturers with a per-customer limit of 2.25 liters per day, and three-year sales records requirement.
• Wine: authorizes up to one additional off-site tasting room for table wine production under 50,000 gallons/year and permits one off-site tasting room for associations representing wineries; limits wine sales off-site to one case per customer per day; requires applications, consent from local authorities, and adherence to all laws.
• Tax and reporting: manufacturer licensees must collect applicable taxes and file reports; maintain records; act as agents for state and local tax collection; ensure compliance with labeling and registration requirements.
• Donations: allows beer donations up to 31 gallons and wine donations up to two cases to licensed nonprofit events, with donations taxed and remaining product returned after the event.
• Effective date: the act becomes law on the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Alcoholic Beverages