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SB-1198 Beer manufacturers: direct shipper permits.(2021-2022)

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Date Published: 04/19/2022 09:00 PM
SB1198:v97#DOCUMENT

Amended  IN  Senate  April 19, 2022
Amended  IN  Senate  March 16, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 1198

Introduced by Senator McGuire

February 17, 2022

An act to add Section 23661.4 to the Business and Professions Code, relating to alcoholic beverages.


LEGISLATIVE COUNSEL'S DIGEST


SB 1198, as amended, McGuire. Beer manufacturers: direct shipper permits.
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. Existing law 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 this state or any other state as a beer manufacturer that 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 impose various requirements on beer direct shipper permitholders before they could begin shipping, including obtaining a seller’s permit or registering with the California Department of Tax and Fee Administration.
This bill would prohibit sales and shipments of beer directly to consumers in California from beer manufacturers that do not possess a beer 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.
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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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) Notwithstanding any law, rule, or regulation to the contrary, any person currently licensed in this state or any other state as a beer manufacturer that 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.
(b) Before sending any shipment to a resident of California, the beer direct shipper permitholder shall do all of the following:
(1) File an application with the department.
(2) Pay the application fee as specified in subdivision (a) of Section 23320 if the beer manufacturer is not currently licensed by the department.
(3) Provide the department its California alcoholic beverage license number or a true copy of its current alcoholic beverage license issued by another state.
(4) Obtain from the department a beer direct shipper permit.
(5) Obtain a seller’s permit or register with the California Department of Tax and Fee Administration pursuant to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code.
(c) 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, or collect and remit to, the administering agency 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 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 all necessary additional information needed to ensure compliance with this section.

(7)

(8) Permit the department or the California Department of Tax and Fee Administration 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 any related laws, rules, or regulations.
(d) 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 issued by the department.
(e) The department department, the Department of Resources Recycling and Recovery, and the California Department of Tax and Fee Administration may promulgate rules and regulations to effectuate the purposes of this section.
(f) 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.
(g) Sales and shipments of beer direct to consumers in California from beer manufacturers that 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.

SEC. 2.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.