Big brother denied: Alabama rejects rule requiring collection of info on beer buyers

MONTGOMERY, Ala. — On Wednesday, the Alabama Alcohol Beverage Control Board rejected a potential rule change that would have given regulators the power to demand the names, phone numbers, addresses, and ages for all customers buying beer for off-premise consumption from Alabama Brewers. However, the board still determined that a state law regulating manufacturers requires that brewers record the names and addresses of buyers for tax audit purposes.

Sen. Bill Holtzclaw (R-Madison) said that he would be willing to change the current law to carve out an exception to the collection rule for brewers. He noted that most breweries do not solely act as manufacturers, but also as retailers.

“It’s clear to me that it’s a manufacturer issue, which is where it needs to reside, and we’re capturing the name and address of who the manufacturer is selling to,” Holtzclaw told Al.com. “But when that manufacturer, that brewer, takes off his manufacturer’s hat and puts on a retailer’s hat is what we’ve created and where this needs to be addressed.

Customers cried foul at the potential invasion of privacy by the ABC, and industry leaders described the potential government interference as a “logistical nightmare.” The Alabama Brewers Guild, composed of over two dozen breweries and pubs from around the state, said collecting the data would be an administrative disaster that could lead to easy breaches in personal information.

“I’m honestly not sure they thought it out very well,” Guild executive director Dan Roberts told the Associated Press.

Opponents also feared potential unintended economic consequences for the brewers. One of the prime concerns of the guild was that customers would feel hassled by the process and simply take their business somewhere else. “It’s a huge deal logistically. Also, there are purchasers who just won’t do it. They’d go to Publix instead of buying at a brewery,” Roberts said.

Alcohol deregulation group Free the Hops (FTH) also aggressively opposed the rule, citing the potential for negative outcomes for consumers. “As nonsensical as it might seem, this rule would essentially empower the ABC Board to come to an individual’s house to confirm his or her purchase of a six pack of beer,” said a statement by Nick Hudson of FTH.

In recent years, the trend for craft beer in Alabama had been toward deregulation. The legislature, for example, has actively worked toward creating a pro-business climate for brewers.

Beer brewing was thriving in Alabama prior to 1909, when Prohibition laws banned the industry. As a result, for much of the 20th century, and until the law was changed in 2009, beer with an alcohol content greater than 6 percent was unlawful in the state.

The Brewery Modernization Act became law in 2011, reforming many former restrictions on breweries’ ability to provide a tap room and restrictive regulations regarding brewpubs. Until June 1 of this year, the state’s craft breweries were banned from selling six packs, large bottles and other containers of beer directly to consumers.

In light of the the victory, Roberts and others representing brewers were pleased that the ABC board did not put the rule on the books. “I think it’s a testament that the rule-making process works,” Roberts said.

However, he is not convinced that brewers still have to collect names and addresses. He noted that the law cited by ABC has been on the books since 1980 and has never been enforced that way.