SB294 Alabama 2021 Session

Summary

Primary Sponsor

Andrew JonesSenator

Republican

Co-Sponsors

Will BarfootWilliam “Bill” M. BeasleyTom ButlerSam GivhanGarlan GudgerSteve LivingstonRandy PriceTom Whatley

Session

Regular Session 2021

Title

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

Summary

The bill lets certain small Alabama wineries sell directly to consumers and to licensed retailers under specific limits and regulatory oversight.

What This Bill Does

It defines a small farm winery as a licensed producer making under 50,000 gallons of table wine per year, using at least 50% Alabama-grown fruit or owning at least eight acres of Alabama vineyards, with production from related entities counted toward the limit; a catastrophic loss does not disqualify them if they qualified before the loss. It allows these wineries to sell and transport their wine directly to consumers on the winery's premises and to licensed retailers, with caps of up to 10,000 gallons per year, or up to 20,000 gallons per year if the winery provides proof that two wholesalers declined to distribute the wine, and if 20,000 gallons are sold directly in a year, they cannot exceed this amount for that year; the wine must be board-approved for sale within the state and have a Certificate of Label Approval from the TTB. It requires wineries to collect and remit state and local taxes, properly label the wine, and report annual production to the ABC Board; the ABC Board may adopt rules to implement the act.

Who It Affects

• Qualified small farm wineries that produce less than 50,000 gallons annually and meet state-origin criteria, who gain new direct-sale options to consumers and retailers under defined limits.
• Licensed retailers and Alabama consumers, who may receive wine directly from small farm wineries (instead of or in addition to traditional wholesaler channels) under the established volume limits and regulatory requirements.

Key Provisions

• Definition and eligibility for 'small farm winery' including annual production cap, state-origin criteria, and the treatment of production from related entities; catastrophic losses do not disqualify a winery that qualified previously.
• Authority to sell directly to consumers on winery premises and to transport/sell to licensed retailers within specified gallon limits (10,000 or 20,000 gallons per year with conditions); includes requirement for board-approved labeling and that retailers include on-premises, off-premises, or both.
• Tax collection, labeling, and reporting requirements for direct sales and wholesale transfers; wineries must report production to the ABC Board and the Board may adopt rules to implement the act.
• Local government restrictions and recordkeeping requirements; counties/municipalities cannot impose additional fees beyond the stated taxes, and wineries must maintain records and provide them to the ABC Board upon request.

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

Subjects

WineWineries