Sep 29, 2022

AB 920 Guidance: Temporary DTC Privileges for California Craft Distillers

This Industry Advisory describes the provisions of Assembly Bill 920 (AB 920) and responds to commonly asked questions about the new law.

Update: This summary has been superseded by the California Craft Distiller DTC Privileges Extended One Year.

Disclaimer: Industry advisories are not regulatory, nor do they have the force of law. These advisories merely provide information about a statute or regulation. Please consult the statute, regulation, and/or an attorney before taking any action to ensure compliance with the law.

On September 29, 2022, AB 920 (Aguiar-Curry, Statutes of 2022) was signed into law. Although similar to some of the prior regulatory relief that was temporarily available through March 2022 due to the COVID-19 pandemic, this bill contains key differences that take effect immediately and are scheduled to expire January 1, 2024.

Beginning September 29, 2022, the holder of a craft distillers license (Type 74) is now temporarily authorized to directly ship distilled spirits manufactured or produced by the licensee at its premises to California consumers only if they do all of the following:

  1. The amount shipped must not exceed the equivalent of 2.25 liters in any combination of prepackaged containers per day per consumer and shall be solely for the consumer’s personal use and not for resale.
  2. The licensed craft distiller must maintain adequate records of the shipments and provide those records to the department upon request.
  3. The licensed craft distiller must require the common 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. The containers in which the distilled spirits are shipped must be conspicuously labeled with the words: “Contains Alcohol: Signature of person age 21 years or older required for delivery.”

Frequently Asked Questions

I’m an out-of-state distilled spirits manufacturer. Am I eligible to ship to California consumers?

This law applies solely to those possessing a Type 74 license.

I have a type 74 license and operate a bona fide eating place. Am I eligible to ship distilled spirits manufactured by others?

No.

What records am I required to maintain?

All that are necessary to demonstrate eligibility and compliance with the law.

If I possess a Type 1 or Type 23 license but not a winegrower’s license, may I sell my cider or perry directly to retailers?

Yes. Business and Professions Code section 23357 allows a licensed beer manufacturer to sell cider or perry they produce to any licensee authorized to sell wine.

Contact

Additional information may be obtained by contacting:

Alcoholic Beverage Control
3927 Lennane Drive, Suite 100
Sacramento, CA 95834

Email us at headquarters@abc.ca.gov
Call (916) 419-2500