SB404 Alabama 2019 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Rodger SmithermanSenator
Democrat
Session: Regular Session 2019
Title: Alcoholic beverages, small beer manufacturers, financial interest in brewpub authorized, transfer of alcoholic beverages to brewppub required to go through wholesaler, Sec. 28-4A-3 am'd.
Summary: SB 404 lets small beer manufacturers own brewpubs under certain limits and changes how beer is taxed and licensed.
What This Bill Does
SB 404 creates and updates brewpub licensing. It allows a small beer manufacturer (up to 60,000 barrels per year) to have a financial interest in a brewpub, including those with a restaurant license, but with transfer and retailer ownership restrictions. It also changes beer tax collection to occur when beer is allocated for retail sale, with licensees acting as tax collectors and remitters. Additionally, it sets brewpub operating requirements and licensing details, including a $1,000 annual license fee, a requirement to have a restaurant on site, and rules for on-premises and limited off-premises beer sales and distribution to wholesalers.

Who It Affects
Small beer manufacturers (up to 60,000 barrels per year) who may have a financial interest in a brewpub, subject to restrictions on direct transfer to the brewpub and on owning other retailers.
Brewpub operators and beer manufacturers who must follow new licensing, tax collection, recordkeeping, and on-site restaurant requirements, and who must appoint a licensed wholesaler designee.

Key Provisions
Allows a small beer manufacturer (up to 60,000 barrels/year) to have a financial interest in a brewpub, including those with a restaurant license, with restrictions such as no direct transfer of beer from manufacturer to brewpub and no ownership of retailers other than the brewpub.
Taxes on beer are collected at the time beer is allocated for retail sale (not when dispensed) and licensees must act as agents to collect and remit the taxes; brewpubs must pay a $1,000 annual license fee, maintain records, and meet specific operating requirements including on-site restaurant needs and wholesaler designation.

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