SB138 Alabama 2021 Session

Summary

Primary Sponsor

J.T. WaggonerSenator

Republican

Session

Regular Session 2021

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.

Summary

SB138 would allow certain Alabama wine manufacturers to ship wine directly to consumers, create exclusive franchise arrangements between suppliers and wholesalers for wine, and establish a licensing, reporting, and enforcement framework under the Alabama Alcoholic Beverage Control Board.

What This Bill Does

It creates a Direct Wine Shipper license for qualifying wine makers (producing less than 50,000 gallons per year) to ship wine directly to individuals in Alabama for personal use, with limits (up to nine liters per household in a 12-month period) and age verification (21+). It requires wine suppliers to designate sales territories and grant exclusive franchise rights to wholesalers for each territory, plus rules for how those franchise agreements can be changed, canceled, or renewed. It adds Chapter 8A with definitions and procedures about supplier-wholesaler relationships, including protections for wholesalers, transfer rules, and a process for compensation and arbitration if disputes arise. It adds reporting requirements and penalties: carriers must report shipments; direct shippers must label containers and collect taxes; violations can lead to misdemeanor charges, fines, or license suspensions, and the Alcoholic Beverage Control Board enforces compliance.

Who It Affects

• Group 1: Wine manufacturers and importers and wholesalers—would have to obtain licenses, designate territories, enter exclusive agreements, and follow new rules for transfers, terminations, and compensation.
• Group 2: Alabama residents and common/permit carriers—could receive direct wine shipments from eligible wineries (21+), with shipments tracked and taxed; carriers must report shipments and could face penalties for noncompliance.

Key Provisions

• Direct Wine Shipper license (Sec 28-3A-6.1): eligibility, limits, labeling, tax duties, audits, and renewal.
• Exclusive sales territories and franchise rules (Chapter 8A: 28-8A-4 through 28-8A-11): requirement for supplier-to-wholesaler territorial agreements; protections and procedures around amendments, terminations, and transfers; compensation and arbitration.
• New definitions and scope (Chapter 8A): terms like supplier, wholesaler, territory, agreement, and direct shipments; preserves existing local laws in select counties.
• Direct shipments and penalties (Sec 28-1-4 and 28-3A-6.1): allow direct shipments to residents under license; shipments prohibited to certain addresses (schools, prisons, etc.); Class C misdemeanor for unlicensed direct shipping; quarterly carrier reporting.
• ABC Board duties and enforcement: ongoing regulation, audits, and potential fines, license suspensions, and board enforcement actions.
• Effective date and local funds note: law becomes effective August 1, 2021, and includes an explicit local funds expenditure clause but with exemptions.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Alcoholic Beverage Control Board