SB138 Alabama 2021 Session

Under existing law, wineries are not permitted to ship or distribute wine directly to retailers or residents in the state. Wine manufacturers and importers are required to sell wine through a licensed wholesaler

This bill would require each supplier of wine to designate sales territories for each of its brands and enter into an exclusive franchise agreement with a wholesaler for each sales territory

This bill would set conditions and requirements for franchise agreements between suppliers and wholesale distributors of wine, including provisions for the modification, termination, cancellation, nonrenewal, or discontinuance of an agreement

This bill would authorize certain wineries to directly ship wine to individuals in the state

This bill would provide further duties of the Alcoholic Beverage Control Board

This bill would delete obsolete language from the Code of Alabama 1975

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment

Relating to alcoholic beverages; to amend Sections 28-1-4 and 28-3-1, Code of Alabama 1975; to add Chapter 8A to Title 28 of the Code of Alabama 1975; to allow certain wine manufacturers to obtain a direct wine shipper license from the Alcoholic Beverage Control Board to allow the licensee to ship limited quantities of wine directly to individuals in the state for personal use in limited circumstances; to provide for the permitting procedure; to authorize common or permit carriers to ship wine to residents; to provide for reporting from the carriers and wineries to the Alcoholic Beverage Control Board and other applicable agencies; to provide that the direct shipment of wine without a license constitutes a Class C misdemeanor; to require licensed importers and manufacturers of wine to enter into exclusive franchise agreements with wholesalers; to regulate franchise agreements between suppliers and wholesalers of wine; to provide for other business relations between suppliers and wholesalers of wine; to provide for an effective date; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.