California Craft Distiller DTC Privileges Extended One Year
This industry Advisory summarizes the provisions of Assembly Bill 1088 (AB 1088) and responds to commonly asked questions about the new law.
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.
AB 1088 (Rubio, Chapter 829, Statutes of 2023) was signed into law on October 13, 2023. This bill temporarily extends the operation of provisions in law related to direct-to-consumer shipping privileges of California craft distillers. The Legislature enacted the original temporary authorization and this extension for the purpose of providing limited relief to manufacturers recovering from pandemic-related impacts.
Since September 29, 2022, the holder of a craft distillers license (Type 74) has been temporarily authorized to directly ship distilled spirits manufactured or produced by the licensee at its premises if done in compliance with Business and Professions Code section 23504.5. This section of law was previously scheduled to repeal January 1, 2024. AB 1088 has extended the repeal date of this section until January 1, 2025. As a result, type 74 licensees remain temporarily authorized to directly ship distilled spirits manufactured or produced by the licensee at its premises to California consumers only if all of the following occur:
- 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.
- The licensed craft distiller must maintain adequate records of the shipments and provide those records to the department upon request.
- 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.
- 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?
What records am I required to maintain?
All that are necessary to demonstrate eligibility and compliance with the law.
What happens January 1, 2025?
This law self-repeals and will cease to exist unless the Legislature extends or modifies the privilege.