AB 1246: Alcoholic beverages: distilled spirits.

(1)Existing law, the Alcoholic Beverage Control Act, requires the Department of Alcoholic Beverage Control to administer the act and perform various duties relating to the issuance of alcoholic beverage licenses. Existing law provides for the licensure and regulation of winegrowers and craft distillers and establishes the privileges that a winegrower or craft distiller may exercise. Existing law authorizes a winegrower, among other things, to sell wine and brandy to any person holding a license authorizing the sale of wine or brandy. Existing law provides that a violation of the act for which another penalty or punishment is not specifically provided for in the act, is a crime, as specified.

This bill would additionally authorize a winegrower to possess and transport brandy for the purpose of storing the brandy to age on the winegrowers premises. The bill would authorize a craft distiller to transport brandy to and from the premises of a licensed winegrower for the purpose of storing the brandy to age on the winegrowers premises.

(2)Existing law authorizes a licensed craft distiller to manufacture and produce distilled spirits, subject to specified conditions, including that the licensee manufacture no more than 150,000 gallons of distilled spirits per fiscal year and sell no more than 2.25 liters of prepackaged containers of the licensees spirits per day per consumer at its premises.

This bill would authorize a licensed craft distiller to sell up to 4.5 liters of prepackaged containers of the licensees spirits per day per consumer at its premises.

(3)Existing law, until January 1, 2026, authorizes a licensed craft distiller to directly ship distilled spirits manufactured or produced by the licensee at its premises to a consumer if they comply with certain requirements, including not shipping more than 2.25 liters in any combination of prepackaged containers per day per consumer.

This bill would authorize a qualifying out-of-state distiller, as defined, whose license is not suspended to directly ship distilled spirits manufactured or produced by the qualifying out-of-state distiller at its premises to a consumer if they comply with the above-described requirements. The bill would, in addition to the requirements described above, require a licensed craft distiller, or qualifying out-of-state distiller, to hold a current distilled spirits direct shipper permit issued by the department. The bill would require, in order to obtain and maintain a distilled spirits direct shipper permit, a licensed craft distiller, or qualifying out-of-state distiller, to, among other things, file an application for the permit with the department and pay specified fees. The bill would authorize the department to enforce the above-described provisions related to direct shipping through administrative proceedings, as provided. The bill would make the sale and shipment of distilled spirits directly to consumers without a permit a crime, as specified. By expanding the scope of a crime, the bill would impose a state-mandated local program. The bill would extend the operation of the above-described direct shipping provisions until January 1, 2027.

(4)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.