SB89 Alabama 2020 Session

Summary

Primary Sponsor

Andrew JonesSenator

Republican

Session

Regular Session 2020

Title

Small farm wineries, authorize to sell to consumers or distribute to retailers

Summary

Allows Alabama farm wineries to self-distribute to retailers or sell directly to consumers under specific production and tax rules.

What This Bill Does

The bill defines farm wineries as licensed table-wine makers that use at least 50% Alabama-grown grapes or produce fewer than 25,000 gallons per year, and it lets them self-distribute to licensed retailers or sell directly to consumers. It permits direct-to-consumer sales (on- or off-premises) and sales to retailers up to 10,000 gallons, with third-party delivery allowed, and requires the wineries to collect and remit state and local taxes and excise taxes. It also allows the Alcoholic Beverage Control Board to adopt rules to implement the act, provides regulatory exemptions and protections (including no local license fees for these activities), and sets an effective date after a short delay following passage.

Who It Affects

• Farm wineries that meet the defined criteria will gain new selling options, including direct-to-consumer and direct-to-retailer sales.
• Licensed retailers and consumers will have new sourcing options from farm wineries, with retailers limited to up to 10,000 gallons from each winery and consumers able to buy directly from wineries, subject to tax requirements.

Key Provisions

• Defines 'farm winery' as a licensed table-wine producer that either uses at least 50% Alabama-grown grapes or produces fewer than 25,000 gallons per year, with a catastrophic loss exception if previously qualified.
• Allows farm wineries to sell directly to consumers (on- or off-premises) and to sell up to 10,000 gallons directly to licensed retailers, with third-party delivery permitted.
• Requires farm wineries to collect and remit state and local sales/use taxes and excise taxes on consumer sales.
• Authorizes the Alcoholic Beverage Control Board to adopt rules to implement the act; requires records to verify qualifications.
• Exempts farm wineries from certain provisions of Article 10 of Chapter 23, Title 40, and prohibits local governments from charging sales-related fees for these activities.
• Effective date: the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Wine