SB259 Alabama 2022 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Session

Regular Session 2022

Title

Alcoholic beverages, brewpubs, annual barrel production limit that allows a beer manufacturer to have a financial interest in a brewpub, further provided, Sec. 28-4A-3 am'd.

Summary

SB259 limits brewpub ownership by beer manufacturers based on annual production, allowing only one brewpub for large producers and counting all related beer toward the production cap.

What This Bill Does

For manufacturers selling 60,000 barrels or fewer per year, the bill keeps the option to have a financial interest in a brewpub. For those producing more than 60,000 barrels, the bill restricts ownership to a single brewpub located in a Class 1 municipality and reduces the off-premises sale limit for that brewpub to 64 ounces per customer per day. It also clarifies that the 60,000-barrel limit must include beer produced by the manufacturer, its parents/subsidiaries/affiliates, and beer produced exclusively for the manufacturer. The bill maintains existing brewpub licensing terms (up to 10,000 barrels per year, on-site and limited off-site sales, etc.) and sets the license fee at $1,000, with the new rules becoming effective in a future specified date after passage.

Who It Affects

• Group 1: Large beer manufacturers (those producing more than 60,000 barrels annually) – their ability to own or have a financial interest in brew pubs is limited to one brewpub, and the off-premises sale limit for that brewpub is reduced to 64 ounces per customer per day.
• Group 2: Brewpub operators, potential brewpub owners, and their affiliates/subsidiaries – they must operate under the brewpub licensing rules, including the one-brewpub limit for large manufacturers and the adjusted sales limits, while continuing to follow license terms and related provisions.

Key Provisions

• Provision 1: A manufacturer producing more than 60,000 barrels annually may have a financial interest in only one brewpub, and that brewpub must be located in a Class 1 municipality.
• Provision 2: For purposes of determining eligibility, the 60,000-barrel production cap must include beer produced by the manufacturer, all beer produced by its parents/subsidiaries/affiliates, and beer produced exclusively for the manufacturer.
• Provision 3: The off-premises beer sale limit for the qualifying brewpub (under the >60,000 barrel rule) is reduced to 64 ounces per customer per day.
• Provision 4: The act preserves the standard brewpub licensing framework (up to 10,000 barrels per year, on-site consumption, and related sale rules) and sets the effective date as the first day of the third month after approval.

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 Beverages