Bill Text: CA SB620 | 2021-2022 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Craft distillers: delivery: direct shipper permits.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Engrossed - Dead) 2022-06-29 - June 29 hearing postponed by committee. [SB620 Detail]
Download: California-2021-SB620-Amended.html
state, state and who is the brand owner or its authorized agent, who obtains a distilled spirits direct shipper permit pursuant to
this section, may sell and ship distilled spirits directly to a resident of California, who is 21 years of age or older, for the resident’s personal use and not for resale.
Bill Title: Craft distillers: delivery: direct shipper permits.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Engrossed - Dead) 2022-06-29 - June 29 hearing postponed by committee. [SB620 Detail]
Download: California-2021-SB620-Amended.html
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Amended
IN
Senate
January 20, 2022 |
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Amended
IN
Senate
January 12, 2022 |
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Amended
IN
Senate
March 11, 2021 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Senate Bill
No. 620
| Introduced by Senators Allen and Dodd (Coauthors: Senators Hueso, Limón, and Skinner) (Coauthor: Assembly Member Cunningham) |
February 18, 2021 |
An act to add Sections 23661.4 and 23661.8 to the Business and Professions Code, relating to alcoholic beverages.
LEGISLATIVE COUNSEL'S DIGEST
SB 620, as amended, Allen.
Distilled spirits and beer: direct shipper permits.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. The Alcoholic Beverage Control Act authorizes a person licensed in California or any other state as a winegrower who obtains a wine direct shipper permit to sell and ship wine directly to a resident of California, who is 21 years of age or older, for the resident’s personal use and not for resale.
This bill would authorize a person licensed in California as a distilled spirits manufacturer or craft distiller, distiller or in any other state as a distilled spirits producer, or
a holder of a federal basic permit to import distilled spirits issued by the Federal Alcohol and Tobacco Tax and Trade Bureau and a license to import distilled spirits issued by this state or any other state, or a person licensed in any
other state as a distilled spirits producer, state and who is the brand owner or its authorized agent, who obtains a distilled spirits direct shipper permit, to sell and ship up to 10 liters of distilled spirits, per consumer, per month, a specified amount of distilled spirits directly to a resident of California, who is 21 years of age or older, for the resident’s personal use and not for resale. resale, as provided. The bill would impose various obligations on distilled spirits direct shipper permitholders before
they could begin shipping, including obtaining a seller’s permit or registering with the State Board of Equalization. The bill would prohibit sales and shipments of distilled spirits directly to consumers in California from distilled spirits producers who do not possess a distilled spirits direct shipper permit. The bill would provide that a person who knowingly makes, participates in, transports, imports, or receives such a shipment would be guilty of a misdemeanor. By expanding the definition of a crime, this bill would impose a state-mandated local program.
This bill would also authorize a person licensed in this state or any other state as a beer manufacturer, regardless of the specific type of license, who obtains a beer direct shipper permit to sell and ship beer directly to a resident of California, who is 21 years of age or older, for the resident’s personal use and not for resale. The bill would create an analogous set of obligations and rights for the
direct shipping of beer as those described above in connection with the direct shipping of distilled spirits. The bill would provide that a person who knowingly makes, participates in, transports, imports, or receives such a shipment would be guilty of a misdemeanor. By expanding the definition of a crime, this bill would impose a state-mandated local program.
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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 23661.4 is added to the Business and Professions Code, to read:23661.4.
(a) (1) Notwithstanding any law, rule, or regulation to the contrary, any person licensed in this state as a distilled spirits manufacturer or craft distiller or in any other state as a distilled spirits producer, or a holder of a federal basic permit to import distilled spirits issued by the Federal Alcohol and Tobacco Tax and Trade Bureau and a license to import distilled spirits issued by this state or any other(2) Before sending any shipment to a resident of California, the distilled spirits direct shipper permitholder shall do all of the following:
(A) File an application with the department.
(B) Pay the application fee as specified in subdivision (a) of Section 23320 if the distilled spirits producer or importer is not currently licensed by the department.
(C) Provide the department its current California alcoholic beverage license number or a true copy of its alcoholic beverage license issued by
another state.
(D) Obtain from the department a distilled spirits direct shipper permit.
(E) Obtain a seller’s permit or register with the State Board of Equalization pursuant to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code.
(b) A distilled spirits direct shipper permit authorizes the permitholder to do all of the following:
(1) (A) Sell and ship up to 10
36 liters of distilled spirits, per consumer, per month, calendar year, to any person 21 years of age or older for their personal use and not for resale. resale if the permitholder produces in, or imports into, the United States 150,000 gallons or fewer of distilled spirits per calendar year.
(B) (i) Sell and ship up to 9 liters of distilled spirits, per consumer, per calendar year, to any person 21 years
of age or older for their personal use and not for resale if the permitholder produces in, or imports into, the United States more than 150,000 gallons of distilled spirits per calendar year. A permitholder that produces in, or imports into, the United States more than 150,000 gallons of distilled spirits per calendar year shall not sell or ship more than a total of 150,000 gallons per calendar year under their distilled spirits direct shipper permit.
(ii) Before selling or shipping distilled spirits pursuant to this subparagraph, the permitholder shall require the consumer to register with the permitholder to order and purchase distilled spirits directly from the permitholder. In order to register, the permitholder shall require the consumer to provide valid proof of identity and age and the permitholder shall verify that the person is 21 years of age or older.
(2) Ship distilled spirits directly to a resident in this state only in containers that are conspicuously labeled with the words: “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 YEARS OR OLDER REQUIRED FOR DELIVERY.”
(3) Ship distilled spirits only if the permitholder uses a common carrier and requires the carrier to obtain the signature of any individual 21 years of age or older before delivering any distilled spirits shipped to an individual in this state.
(4) If the permitholder is located outside of this state, pay to the State Board of Equalization all sales and use taxes and excise taxes on sales to residents of California under the distilled spirits direct shipper
permit. For excise tax purposes, all distilled spirits sold pursuant to a direct shipper permit shall be deemed to be distilled spirits sold in this state.
(5) If located within this state, provide the department any necessary additional information not currently provided to ensure compliance with this section.
(6) If the permitholder is located outside of this state, report to the department, no later than January 31 of each year, the total amount of distilled spirits shipped into the state during the preceding calendar year under the distilled spirits direct shipper permit.
(7) Permit the department or the State Board of Equalization to perform an audit of the distilled spirits direct shipper permitholder’s records upon
request.
(8) Be deemed to have consented to the jurisdiction of the department or any other state agency and the California courts concerning enforcement of this section and any related laws, rules, or regulations.
(c) A distilled spirits shipper permitholder located outside of the state may annually renew its permit with the department by paying an annual fee as specified in subdivision (b) of Section 23320 and adjusted pursuant to subdivisions (d) and (e) of Section 23320 and providing the department with a true copy of its current alcoholic beverage license issued by another state. A distilled spirits direct shipper permitholder located in California shall renew its distilled spirits direct shipper permit in conjunction with its master license. For purposes of this section,
“master license” means a distilled spirits manufacturer or craft distiller license, or a distilled spirits general importer or distilled sprits
spirits importer license, issued by the department.
(d) The department and the State Board of Equalization may promulgate rules and regulations to effectuate the purposes of this law.
(e) The department may enforce the requirements of this section by administrative proceedings to suspend or revoke the distilled spirits direct shipper permit, and the department may accept payment of an offer in compromise in lieu of suspension as provided by this division. Any hearing held pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code against a permitholder outside of California shall be held in the City of Sacramento.
(f) Sales and shipments of distilled spirits directly to consumers in California from distilled spirits producers or importers who do not possess a current distilled spirits direct shipper permit from the department are prohibited. Any person who knowingly makes, participates in, transports, imports, or receives such a shipment is guilty of a misdemeanor pursuant to Section 25617.
SEC. 2.
Section 23661.8 is added to the Business and Professions Code, to read:23661.8.
(a) (1) Notwithstanding any law, rule, or regulation to the contrary, any person licensed in this state or any other state as a beer manufacturer, regardless of specific type of license, who obtains a beer direct shipper permit pursuant to this section may sell and ship beer directly to a resident of California, who is 21 years of age or older, for the resident’s personal use and not for resale.(2) Before sending any shipment to a resident of California, the beer direct shipper permitholder shall do all of the following:
(A) File an application with the department.
(B) Pay the application fee as specified in subdivision (a) of Section 23320 if the beer manufacturer is not currently licensed by the department.
(C) Provide the department its California alcoholic beverage license number or a true copy of its current alcoholic beverage license issued by another state.
(D) Obtain from the department a beer direct shipper permit.
(E) Obtain a seller’s permit or register with the State Board of Equalization pursuant to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code.
(b) A beer direct shipper permit authorizes the permitholder to do
all of the following:
(1) Sell and ship beer to any person 21 years of age or older for their personal use and not for resale.
(2) Ship beer directly to a resident in this state only in containers that are conspicuously labeled with the words: “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 YEARS OR OLDER REQUIRED FOR DELIVERY.”
(3) Ship beer only if the permitholder requires the carrier to obtain the signature of any individual 21 years of age or older before delivering any beer shipped to an individual in this state.
(4) If the permitholder is located outside of this state, report to the department no later than January 31 of each year, the total amount of
beer shipped into the state during the preceding calendar year under the beer direct shipper permit.
(5) If the permitholder is located outside of this state, pay to the State Board of Equalization all sales and use taxes, and excise taxes on sales to residents of California under the beer direct shipper permit. For excise tax purposes, all beer sold pursuant to a direct shipper permit shall be deemed to be beer sold in this state.
(6) If the permitholder is located outside of this state, demonstrate full compliance with the California Beverage Container Recycling and Litter Reduction Act (Division 12.1 (commencing with Section 14500) of the Public Resources Code).
(6)
(7) If located within this state, provide the department any necessary additional information not currently provided to ensure compliance with this section.
(7)
(8) Permit the department or the State Board of Equalization to perform an audit of the beer direct shipper permitholder’s records
upon request.
(8)
(9) Be deemed to have consented to the jurisdiction of the department or any other state agency and the California courts concerning enforcement of this section and any related laws, rules, or regulations.
(c) A beer direct shipper permitholder located outside of the state may annually renew its permit with the department by paying an annual fee as specified in subdivision (b) of Section 23320, and adjusted pursuant to subdivisions (d) and (e) of Section 23320, and providing the department with a
true copy of its current alcoholic beverage license issued by another state. A beer direct shipper permitholder located in California shall renew its beer direct shipper permit in conjunction with its master license. For purposes of this section, “master license” means a beer manufacturer’s license, regardless of specific type of license, issued by the department.
(d) The department and department, the State Board of Equalization Equalization, and the Department of Resources Recycling and Recovery may promulgate
rules and regulations to effectuate the purposes of this law.
(e) The department may enforce the requirements of this section by administrative proceedings to suspend or revoke the beer direct shipper permit, and the department may accept payment of an offer in compromise in lieu of suspension as provided by this division. Any hearing held pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code against a permitholder outside of California shall be held in the City of Sacramento.
(f) Sales and shipments of beer direct to consumers in California from beer manufacturers who do not possess a current beer direct shipper permit from the department are prohibited. Any person who knowingly makes, participates in, transports,
imports, or receives such a shipment is guilty of a misdemeanor pursuant to Section 25617.
