SB316 Alabama 2025 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Bobby D. SingletonSenator
Democrat
Session: 2025 Regular Session
Title: ABC Board; establishing a new license for an educational tourism distillery
Summary: SB316 creates an Educational Tourism Distillery license in Alabama that lets eligible liquor manufacturers operate tours, sell their products on-site for on-site and limited off-site consumption, and store products at a separate extension, all under new rules and taxes.
What This Bill Does
The bill adds a new Educational Tourism Distillery license under the ABC Board, allowing eligible distilleries to host guided tours with an educational component and to sell liquor, wine, and beer on-site for on-premises consumption and in limited off-premises areas. It requires a minimum 5,000 square foot distillery, production of at least 100,000 gallons of liquor per year, and that at least half of total sales come from liquor produced on-site; tastings are allowed but limited to 1.5 ounces per patron and must be included in tour pricing. It imposes a $1,000 license fee, requires taxes and markups to be paid to the board like ABC stores, mandates extensive recordkeeping, bonds ($25,000), and board inspections, and allows a one-time off-premises storage extension under strict conditions. It also adjusts small farm winery rules to permit certain direct sales to distilleries and retailers and sets an October 1, 2025 effective date.

Who It Affects
Educational Tourism Distilleries and liquor manufacturers that host tours: must meet production, size, and ownership requirements; may sell liquor, wine, and beer on-site in a designated area and under tight regulatory controls; must maintain records, post warnings, obtain label approvals, and remit taxes to the board.
Small farm wineries and licensed retailers/wholesalers: new provisions allow direct sales of table wine to educational tourism distilleries and expanded direct-to-retailer options under defined limits, with labeling, tax, and transport requirements; they are subject to board oversight and local fee restrictions.

Key Provisions
Establishes Educational Tourism Distillery license; eligible applicants must produce 100,000+ gallons/year and operate facilities of at least 5,000 square feet; license fee set at $1,000.
Allows on-premises sales in a designated enclosed area (minimum 500 square feet) for on-site consumption and limited off-site consumption, with under-21 prohibitions in service areas and a per-patron tasting limit of 1.5 ounces; retail sales in the area are restricted.
Requires guided tours with an educational component about the liquor produced; tastings must be included in the tour price and occur in a separate designated area.
Permits transfer of liquor from a licensed manufacturer to an Educational Tourism Distillery if the licensee owns at least 75% of the brand; allows one off-premises storage extension within 10 miles of the original premises with board and ATTTB approval and security requirements.
Imposes taxes and markups on liquor produced at the licensed premises, collected and remitted to the ABC Board, with penalties for late filing, nonpayment, and interest for underpayment; requires a $25,000 surety bond.
Requires daily permanent records of materials, production, storage, sale, and recipients; three-year retention of records; board and authorized agents may inspect at any time.
Requires label compliance; licensees must file a list of Alabama-available labels and federal label approvals or exemptions; contraband liquor may be seized.
Defines and regulates small farm wineries, including a 50,000-gallon cap and criteria for state-grown fruit or honey use; allows limited direct-to-retailer sales and on-premises/off-premises sales at licensed premises to educational tourism distilleries, with board-approved labeling and tax compliance.
Local governments cannot levy additional license fees on small farm wineries beyond state taxes; the act sets various annual license fees for licenses, including $1,000 for Educational Tourism Distillery.
Effective date is October 1, 2025.

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 & Tobacco