HB306 Alabama 2020 Session

Relating to Madison County; to allow certain small farm wineries that are licensed by the Alcoholic Beverage Control Board to self-distribute their table wines to licensed retailers or to sell directly to consumers and to deliver, or contract with a third party common carrier to deliver, their table wine to residents of Madison County who are at least 21 years of age; to require small farm wineries to collect and remit certain taxes; and to authorize the board to adopt rules.

Section 1

This act shall apply only within Madison County.

Section 2

The Legislature declares that this act regulates the liquor traffic within the meaning and intent of Section 104 of the Constitution of Alabama of 1901.

Section 3

(a) As used in this section, small farm winery means a manufacturer of table wine licensed by the Alcoholic Beverage Control Board that meets all of the following qualifications: (1) The winery is located entirely within Madison County. (2) The winery produces no more than 100,000 gallons of table wine per year. (3) No less than 50 percent of the winery's total production of table wine is produced at the winery. (4) No less than 50 percent of the total fruit used in producing the winery's table wine is fruit that is grown in this state. (b) Notwithstanding subsection (a), a catastrophic loss to fruit produced in this state may not disqualify a small farm winery if the winery has previously qualified as a small farm winery prior to the catastrophic loss. (c) Notwithstanding any provision of Title 28, Code of Alabama 1975, to the contrary, a small farm winery in Madison County may do all of the following: (1) Sell its table wines directly to consumers in Madison County, provided the winery collects and remits all state and local sales or use taxes and excise taxes due on the sale of table wine to consumers, and packages and labels the wine in accordance with state and federal law. (2) Deliver, or contract with a third party common carrier to deliver, its table wine directly to residents in Madison County who are at least 21 years of age, provided the shipping container shall be labelled with the words: "Contains Alcohol: Must be delivered to a person 21 years of age or older" and the winery or common carrier shall confirm, at the time of delivery, that the recipient is at least 21 years of age. (3) Sell its table wine to retailers within Madison County licensed by the Alcoholic Beverage Control Board. For purposes of this subsection, retailers include those that are licensed for on-premises consumption, for off-premises consumption, or for both. (4) Deliver, or contract with a third party common carrier to deliver, its table wine to licensed retailers in Madison County. (d) Small farm wineries within Madison County shall collect and remit all applicable taxes to the Department of Revenue. (e) Small farm wineries within Madison County shall not be subject to Article 10, commencing with Section 40-23-260, of Chapter 23 of Title 40, Code of Alabama 1975. (f) The Alcoholic Beverage Control Board shall adopt rules to implement this section, which may include, but not be limited to, a requirement that a small farm winery maintain records that verify that the winery meets the qualifications under this section.

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.