1. (a) In addition to the licenses authorized to be issued and renewed by the board pursuant to Chapter 3A, the board, upon the applicant’s compliance with this article, Chapter 3A, and the rules adopted thereunder, and the conditions set forth in subsection (b), may issue to a qualified applicant a small craft winery license which shall authorize the licensee to do all of the following:

   1. (1) Manufacture or produce table wine, in a quantity not to exceed 50,000 gallons in any one year, and sell wine manufactured on the licensed premises at retail for on-premises consumption at the licensed premises only.
   2. (2) Sell table wine manufactured on the licensed premises in original, unopened containers at retail for off-premises consumption, provided the wine sold for off-premises consumption may not exceed twelve 750-milliliter bottles per customer per day and shall be sealed, labeled, packaged, and taxed in accordance with state, local, and federal laws, rules, and regulations.
   3. (3) Sell table wine manufactured on the premises in original, unopened containers to any licensed wine wholesaler designated by a small craft winery licensee pursuant to Section 28-8A-4 for resale to retail licensees.
   4. (4) Donate and deliver up to two cases of the licensee’s table wine to a licensed charitable special event operated by or on behalf of a nonprofit organization. Donations shall be taxed in accordance with state, local, and federal laws, rules, and regulations. Any wine remaining at the conclusion of the charitable event shall be returned to the small craft winery for disposal.
   5. (5) Purchase table wine in original, unopened containers from licensed wine wholesalers and sell the wine at retail for on-premises consumption only, in a room or rooms or place on the licensed premises at all times accessible to the use and accommodation of the general public.

2. (b) A small craft winery is subject to all of the following conditions:

   1. (1) The proposed location of the premises, at the time of the original application, shall not be prohibited by a valid zoning ordinance or other ordinance in the valid exercise of police power by the governing body of the municipality or county in which the small craft distillery is located.
   2. (2) Wine manufactured by the licensee shall be packaged and sold in any original containers as approved by the board and in accordance with the standards of fill requirements prescribed by the U.S. Department of the Treasury or contained in bottles to be dispensed only on the premises where fermented for consumption on the premises.
   3. (3) A small craft winery may not sell any table wine if the small craft winery is not actively and continuously engaged in the production of table wine on the licensed premises.
3. (c) The annual license fee levied and prescribed for a license as a small craft winery issued or renewed by the board is one thousand dollars ($1,000).
4. (d) Sections 28-3-4 and 28-3A-6(b) shall not be applicable with regard to wine manufactured by the small craft winery and sold and dispensed on the licensed premises.
5. (e) Nothing in this section shall be construed to alter in any way the distribution of revenue from a tax levied pursuant to a local law.

(Act 2026-412, §3.)