The Midnight Hour

This morning Governor Riley signed HB373, the Gourmet Beer Bill, amidst incredible constituent support. Estimates indicate the governor’s office received over 3000 phone calls and an undetermined number of emails in support of the bill. After conflicting early reports of the bill’s signing from the governor’s press office, the governor’s chief of staff confirmed about 9:55 AM that the bill is now law. The law removes the 6% alcohol by volume (ABV) restriction on beer sold in Alabama and replaces it with a 13.9% restriction. Stores that lack a license to sell beer for on-premises consumption will not be able to sell the new beer. Here’s some questions you may have:

1. Why should I care?

Do you like beer? If so, you’ll now have a much greater selection to choose from. The archaic 6% ABV restriction kept countless craft breweries from selling their brews in Alabama. Even if you don’t like beer, I assume you like money. Because these beers weren’t available in Alabama, enthusiasts traveled to neighboring states to purchase craft beer. Those tax dollars now come to Alabama. Finally, no defensible reason exists for the alcohol content of beer to be restricted, especially when hard liquor can contain up to 100% ABV. The law was nonsensical, and it’s change is a win for liberty—period.

2. Why the new 13.9% restriction? Where did that number come from?

In Alabama, table wine is limited to 14.9% and taxed at a higher rate than beer. Businesses were afraid that if the ABV limit for beer were raised above that of wine then Montgomery would decide to tax beer at the higher rate.  This does mean that some outstanding beers will still be excluded from Alabama, but the 13.9% restriction was a necessary compromise.

3. What’s the thing about a license?

Another compromise. This amendment was added when the bill passed the senate. Some senators were concerned about the high alcohol beer being available in “convenience stores.” Yes, the concern is nonsensical, but in Alabama politics you have to tolerate some nonsense or you can’t get anything done. Three types of licenses are available to establishments that want to sell beer:

A) On premises- Beer is sold in open containers for immediate consumption. (restaurants, bars, etc)

B) Off premises- Beer is sold in closed containers and consumed elsewhere. (most gas stations, some grocery stores)

C) On/off premises- Beer can be sold in closed containers and consumed elsewhere, or the business can host events where the beer is served immediately, much like a wine tasting. (some grocery stores, most wine stores, some gas stations)

The amendment means that stores with an “off premises” only license will not be able to sell the new beer. However, the on/off premises license is not difficult to obtain and costs the same as the other licenses. Furthermore, more stores have the on/off license than you might think. This is an unfortunate compromise, but once again…Alabama politics.

4. So the fight is over?

Not by a long shot. The 6% ABV restriction was the first priority of Free the Hops, the grassroots lobbying organization that drives alcohol legislation reform. However, Alabama still has many problems with its beer laws—all left over from Prohibition. First, container sizes are limited to 16 ounces or less. This means that you can’t buy beer in 22 oz bottles, a common container for craft beer. Some beer is only available in 22 oz bottles, meaning that the container size restriction is a de facto ban on those beers. Next, Alabama law makes opening a new brewery, brewpub, or distribution company almost impossible. Homebrewing is also tightly regulated to the point that it’s almost illegal. All of these issues choke viable business plans and should be reformed.