SB 404

Relating to alcoholic beverages; to amend Section 28-4A-3, Code of Alabama 1975; to permit a small manufacturer of beer to have a financial interest in a brewpub under certain conditions.

Section 1

Section 28-4A-3, Code of Alabama 1975, is amended to read as follows:

§28-4A-3.

(a) In addition to the licenses authorized to be issued and renewed by the board pursuant to the Alcoholic Beverage Licensing Code codified as Chapter 3A of this title, the board, upon applicant's compliance with the provisions of this chapter, and with Chapter 3A and the regulations made rules adopted thereunder, and the conditions set forth in subsection (b), is authorized to may issue to a qualified applicant a brewpub license which shall authorize the licensee to manufacture do all of the following:

(1) Manufacture or brew beer, in a quantity not to exceed 10,000 barrels in any one year and to sell beer brewed on the licensed premises in unpackaged form at retail for on-premises consumption at the licensed premises only.; to sell

(2) Sell beer brewed on the licensed premises in packaged form at retail for off-premises consumption, provided the beer sold for off-premises consumption may not exceed 288 ounces per customer per day and shall be sealed, labeled, packaged, and taxed in accordance with state and federal laws and regulations.; to sell

(3) Sell beer brewed on the premises in original, unopened barrel or keg containers to any licensed wholesaler designated by a brewpub licensee pursuant to Sections 28-8-2 and 28-9-3 for resale to retail licensees.; to donate

(4) Donate and deliver up to two kegs of the licensee's beer to a licensed charitable special event operated by or on behalf of a nonprofit organization; provided, however, donations shall be taxed in accordance with state and federal laws and regulations, and any beer remaining at the conclusion of the charitable event shall be returned to the manufacturer for disposal.; and to purchase

(5) Purchase beer, including draft or keg 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.,

(b) A brewpub is subject to all of the following conditions:

(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 is located.

(2) Beer brewed by the brewpub licensee shall be packaged or contained in barrels from which the beer is to be dispensed only on the premises where brewed for consumption on the premises or sold in original, unopened barrel or keg containers to any designated wholesaler licensee for resale to retailer licensees.

(3) The brewpub must contain and operate a restaurant or otherwise provide food for consumption on the premises.

(4) The brewpub may not sell any alcoholic beverages if it is not actively and continuously engaged in the manufacture or brewing of alcoholic beverages on the brewpub's licensed premises.

(b)(c) 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 one thousand dollars ($1,000).

(d) A manufacturer that sells, on an annual basis, an amount equal to no more than 60,000 barrels of beer, may have a financial interest in a brewpub, including a brewpub that also has a restaurant retail license, provided the manufacturer may not transfer alcoholic beverages directly from the manufacturer to the brewpub but may purchase alcoholic beverages from an authorized wholesaler or as otherwise provided by law, and may not have a financial interest in any retailer other than a brewpub.

(c)(e) Except as provided in this subsection, the provisions of this title 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 either of the following and sold and dispensed on the brewpub premises:. In all other respects, Section 28-3-4, Section 28-3A-6(b), and Section 28-3A-6(i)(2) shall be applicable.

(1) The brewpub.

(2) A manufacturer described in, and in compliance with, subsection (d)."

Section 2

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.