SB281 Alabama 2020 Session

Summary

Primary Sponsor

J.T. Waggoner Senator

Republican

Session

Regular Session 2020

Title

Alcoholic beverages,to create permitting procedure to allow certain wine manufacturers to ship wine directly to consumers in state, to require licensed importers and manufacturers of wine to enter into exclusive franchise agreements with wholesalers, and to provide for reporting requirement and penalties, Secs. 28-3A-6.1, 28-8A-1 to 28-8A-11, inclusive, added; Sec. 28-1-4 am'd.

Description

Under existing law, wineries are not permitted to ship or distribute wine directly to retailers or residents in the state. Wine manufacturers and importers are required to sell wine through a licensed wholesaler.

This bill would require each supplier of wine to designate sales territories for each of its brands and enter into an exclusive franchise agreement with a wholesaler for each sales territory.

This bill would set conditions and requirements for franchise agreements between suppliers and wholesale distributors of wine, including provisions for the modification, termination, cancellation, nonrenewal, or discontinuance of an agreement.

This bill would authorize certain wineries to directly ship wine to individuals in the state.

This bill would provide further duties of the Alcoholic Beverage Control Board.

This bill would delete obsolete language from the Code of Alabama 1975.

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.

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Subjects

Alcoholic Beverage Control Board