Legislative and Regulatory Accomplishments

ABC Excise Tax Reform for Distillers

By Direction of the ABC Board

• By practice, the ABC had been assessing a excise tax on distillery tasting rooms as if the ABC had sold the product at its retail stores. By working with the ABC Legal Department, the Guild was able to successfully advocate for the ABC to use the more appropriate, lower wholesale assessment for distillery direct sales.

Effective December 2020

Curbside Pickup

20-X-6-.19ER ABC Rules and Regulations

• During the COVID-19 Pandemic and shutdown, the alcoholic beverage industry was successful in advocating for the ABC to implement emergency regulations to allow the curbside pickup of beer, wine, and liquor from on- and 0ff-premise ABC licensees. The Guild was later successful in lobbying to have this provision expanded by increasing volume restrictions on each sale.

Effective March 24, 2020. Amended June 25, 2020.

Other Pandemic Efforts

By Written and Verbal Communication

• Throughout the COVID-19 Pandemic, the Guild was able to work directly with ABC and other government agencies to obtain clarification and favorable opinions on keg buy-backs, excise tax deferments, production of hand sanitizer, compliance with regard to spoiled product destruction, liquor liability insurance requirements during a shutdown, sales tax deferments for breweries, and more.

Throughout 2020

ABC Excise Tax Reform

SB404 by Senator Rodger Smitherman

RELATING TO ALCOHOLIC BEV; TO PERMIT A SMALL MFG OF BEER TO HAVE A FINANCIAL INTEREST IN A BREWPUB

• Existing law created a tax and reporting nightmare for breweries in Alabama, requiring them to accurately account for every sample, pint, or other serving of beer at the brewpub or tasting room, and to pay taxes on each individual serving. This bill was written by the Guild to change the tax assessment point to the keg or case, as it is done elsewhere in Alabama. This made the system simpler for brewers while also improving the level of accountability to regulators.

Assigned Act No. 2019-400 on June 6, 2019

Satellite Brewpubs

SB404 by Senator Rodger Smitherman

RELATING TO ALCOHOLIC BEV; TO PERMIT A SMALL MFG OF BEER TO HAVE A FINANCIAL INTEREST IN A BREWPUB

• Existing law prevent any manufacturer-class brewery from owning a satellite brewpub location. This bill provided that a small brewery could have a financial interest in a brewpub location, including a brewpub with a restaurant retail license.

Assigned Act No. 2019-400 on June 6, 2019

Manufacturer Participation in Entertainment Districts

SB276 by Senator Rodger Smitherman

TO AMEND SECTION 28-3A-17.1 RELATING TO ENTERTAINMENT DISTRICTS

• The Guild supported this legislation to clarify that brewery, distillery, and winery tasting rooms could fully participate in entertainment districts in Alabama. Entertainment districts are defined areas within a municipality where patrons can carry alcohol from a licensed premises throughout the district.

Assigned Act No. 2019-468 on June 10, 2019

Clarification for Tasting Room Hours

HB303 by Representative Anthony Daniels

RELATING TO ALCOHOLIC BEVERAGES

• Existing law prohibited alcohol manufacturers from selling alcohol between the hours of 9 PM Saturday and 2 AM the following Monday. This bill clarified that brewery, distillery, and winery tasting rooms are exempt from this restriction. This bill was developed after Alabama ABC suggested the law needed to be more clear to prevent the sales restriction from being interpreting as requiring tasting rooms to close during these times.

Assigned Act No. 2018-513 on April 4, 2018

Increasing Bottle Sales Limit for Distilleries

SB352 by Senator Jimmy Holley

TO AMEND SECTION RELATING TO ALCOHOLIC BEVERAGES

• Existing law limited off-premise sales from distilleries to 750 mL per-person per-day, effectively one bottle. This bill increased that limit to 2.25 liters per-person per-day, effectively 3 bottles.

Assigned Act No. 2018-386 on March 27, 2018

Nonprofit Event License

HB414 by Representative Craig Ford

TO AMEND SECTION RELATING TO THE SALE OF ALCOHOLIC BEVERAGES

• This bill created a simplified special event license for qualified nonprofit organizations. The new license makes it easier for nonprofits to host licensed fundraising events and reduces the enforcement burden on Alabama ABC. This legislation was championed by the Etowah Chamber and a coalition of nonprofit organizations.

Assigned Act No. 2018-447 on March 29, 2018

Consumer Privacy at Tasting Rooms

SB234 by Senator Bill Holtzclaw

RELATING TO ALCOHOLIC BEVERAGES; THAT MANUFACTURERS AND BREWPUBS ARE NOT REQUIRED TO MAINTAIN NAMES

• In response to an Alabama ABC position that existing law required manufacturers to record the name and address of consumers who purchase beer at their tasting rooms, this bill clarified that licensees are not required to maintain personal demographic information of their customers.

Assigned Act No. 2017-404 on May 26, 2017

Craft Beverage Modernization And Tax Reform Act (U.S. Congress)

Included in HR1 by US Representative Kevin Brady (R-TX)

• Included as part of the 2017 tax reform package, provisions of H.R. 747 by US Representative Erik Paulsen (R-MN) and S.236 by US Senator Ron Wyden (D-OR) reduced the federal excise tax on beer for small producers to $3.50 per barrel. The Alabama Brewers Guild advocated for this legislation with other states under the leadership of the Brewers Association. At the time of passage, co-sponsors from Alabama included Senator Luther Strange and Representatives Bradley Byrne, Martha Roby, Mike Rogers, and Mo Brooks.

Became Public Law No. 115-97 on December 22, 2017

Manufacturer Participation at Beer Tastings

Amended 20-X-6-.18 ABC Rules and Regulations

• The Alabama ABC, as part of a thorough review of its internal regulations, clarified its regulations on beer tastings to clarify that manufacturer licensees can participate at retail beer tastings.

Amendment effective August 5, 2017

Growler Bill

HB176 by Representative Anthony Daniels

RELATING TO ALCOHOLIC BEVERAGES; TO AMEND SECTIONS 283-1,28-3A-6 & 28-4A-3

• Based on the proposals of the Alcoholic Beverage Study Commission, this bill allowed small breweries and brewpubs to sell up to 288 oz of beer per-person per-day off-premise consumption. It also removed restrictions on brewpub locations and provided for donations of beer for charitable events.

Assigned Act No. 2016-97 on March 24, 2016

Distillery Bottle Sales

SB132 by Senator Bobby Singleton

TO AMEND SECTION 28-3A-6 RELATING TO ALCOHOLIC BEVERAGES

• Based on the proposals of the Alcoholic Beverage Study Commission, this bill allowed distilleries in Alabama to sell up to 750 mL of spirits per-person per-day off-site consumption.

Assigned Act 2016-130 on April 12, 2016

Alcoholic Beverage Study Commission

HJR 154 by Representative Alan Harper

ESTABLISHING AN AL ALCOHOLIC BEVERAGE STUDY COMMISSION

• This resolution created the Alcoholic Beverage Study Commission, a group of lawmakers and ABC officials, to consider proposals for reforms to licensing and the three-tier system. Its proposals were later adopted by legislation in 2016.

Assigned Act No. 2015-144 on May 11, 2015

Homebrew Legalization

HB9 by Representative Mac McCutcheon

TO PERMIT PERSONS 21 YEARS OF AGE OR OLDER TO PRODUCE A LIMITED AMOUNT OF HOME BREWED BEER

• Although supported by the Guild, this bill passed due to the hard work and advocacy of a grassroots group of Alabama homebrewers and the bill’s sponsor, Mac McCutcheon.

Assigned Act No. 2013-204 on May 10, 2013

Gourmet Bottle Bill

SB294 by Senator Paul Sanford

AMEND SEC 28-3A-23 RELATING TO THE SIZE OF CONTAINERS OF BEER SOLD AT RETAIL

• Part of the original mission of Free the Hops, this bill authorized beer to be sold in bottles and cans up to 25.4 oz. The previous limit was 16 oz. This restriction does not apply to growlers or crowlers.

Assigned Act No. 2012-468 on May 16, 2012

Refillable Glass Growlers

ABC Practices and Policy

• Based on inquiries and advocacy by private citizen Brian Allen, the Guild worked with Alabama ABC and the Department of Public Health to allow and properly regulate refillable glass growlers for beer.

Brewery Modernization Act

SB192 by Senator Bill Holtzclaw

TO AMEND THE ALCOHOLIC BEVERAGES LIC.PROVISIONS FOR MANUFACTURERS

• Championed by Free the Hops during the time the Alabama Brewers Guild was just getting up and running, this is the bill that legalized tap rooms in Alabama.

Assigned Act No. 2011-630 on June 9, 2011

Gourmet Beer Bill

HB373 by Representative Thomas Jackson

FURTHER DEFINE THE TERM BEER FOR ABC LICENSING PURPOSES TO INCLUDE MALT BEVERAGE WITH HIGHER ALCOHOL

• Championed by Free the Hops before the Alabama Brewers Guild formally existed, this is the bill that really started the craft beer movement in Alabama by legalizing beer up to 13.9% ABV. Previously, beer in Alabama had a 6% ABV limit. This legislation was a true grassroots movement championed by volunteers that took five years to accomplish.

Assigned Act No. 2009-771 on May 22, 2009