SB329 By Senators Holtzclaw, Livingston, Albritton, Brewbaker, Pittman, Singleton, Smitherman, Figures, Coleman-Madison, Ward and Whatley RFD Fiscal Responsibility and Economic Development Rd 1 16-MAR-17

SYNOPSIS: Currently, there is no specific license of the Alcoholic Beverage Control Board relating to direct shipping of limited quantities of wine to Alabama residents for their personal use.

This bill would allow a currently licensed wine producer, supplier, importer, wholesaler, distributor, or retailer to obtain a wine direct shipper license from the Alcoholic Beverage Control Board to allow the licensee to ship limited quantities of wine directly to Alabama residents for their personal use, under certain circumstances.

A violation of the requirements of this bill would constitute a Class C misdemeanor.

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.

A BILL TO BE ENTITLED AN ACT

To provide for a wine direct shipper license; to allow the licensee to ship a limited amount of wine directly to an Alabama resident who is 21 years of age or older for personal use only; to provide the licensing procedure; to provide restrictions and requirements on the direct shipment of wine; to provide for issuance and renewal fees for the wine direct shipper license; to provide that an unlicensed direct shipment of wine constitutes a Class C misdemeanor; 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.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. (a) Any person currently licensed in this or any other state as a wine producer, supplier, importer, wholesaler, distributor, or retailer who obtains a wine direct shipper license, as provided in this section, may ship annually up to 24 cases of wine, each case not exceeding nine liters of wine, directly to a resident of Alabama who is at least 21 years of age for such resident's personal use and not for resale.

(b) Before sending any shipment to an Alabama resident, the wine direct shipper licensee must first:

(1) File an application with the Alcoholic Beverage Control Board.

(2) Pay a one hundred dollar ($100) registration fee.

(3) Provide to the board a true copy of its current alcoholic beverage license issued in this or any other state.

(4) Obtain from the board a wine direct shipper license.

(c) A wine direct shipper licensee:

(1) May not ship more wine than is specified in subsection (a).

(2) Shall ensure that all containers of wine shipped directly to a resident in this state are conspicuously labeled with the words: "CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY."

(3) If located outside of this state, shall report to the board annually the total amount of wine shipped into the state the preceding calendar year.

(4) If located outside of this state, shall annually pay to the Department of Revenue all sales taxes and excise taxes due on sales to Alabama residents in the preceding calendar year, the amount of such taxes to be calculated as if the sale were made in Alabama.

(5) If located within this state, shall provide the Department of Revenue any additional information deemed necessary beyond that already required for retail sales from the winery tasting room to ensure compliance with this section.

(6) Shall permit the board or the Department of Revenue to perform an audit of the wine direct shipper licensees records upon request.

(7) Shall be deemed to have consented to the jurisdiction of the board or any other state law enforcement agency and the Alabama courts concerning enforcement of this section and any related laws or administrative rules.

(d) A wine direct shipper licensee may renew its license with the board by paying a fifty dollar ($50) renewal fee annually and providing the board a true copy of its current alcoholic beverage license issued in this or any other state.

(e) The board and the Department of Revenue may jointly promulgate rules pursuant to the Alabama Administrative Procedure Act to implement this section.

(f) The board may enforce the requirements of this section by administrative proceedings to suspend or revoke a wine direct shipper license, and the board may accept payment of an offer in compromise in lieu of suspension, such payments to be determined by rule promulgated by the board.

(g) Shipments of wine direct to consumers in Alabama from persons who do not possess a current wine direct shipper license from the board are prohibited and any person who knowingly makes, participates in, transports, imports, or receives such a shipment is guilty of a Class C misdemeanor.

Section 2. Although this bill would have as its purpose or effect the requirement of a new or increased expenditure of local funds, the bill is excluded from further requirements and application under Amendment 621, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, because the bill defines a new crime or amends the definition of an existing crime.

Section 3. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Alcoholic Beverages

Alcoholic Beverage Control Board

Business and Commerce

Wine

Sales

Crimes and Offenses

Criminal Law and Procedure

Revenue Department

Licenses and Licensing