Alcoholic beverage control.
The implications of AB 2754 are primarily administrative, ensuring that the existing licensing framework remains intact for craft distillers. Under the current law, a craft distiller may produce up to 150,000 gallons of distilled spirits annually, provided at least 65% of the total volume produced is made from their own distillation processes. Additionally, the bill retains existing prohibitions against granting licenses to individuals connected to larger manufacturers or wholesalers, aiming to preserve the independence and unique identity of craft distillers in the market.
Assembly Bill 2754, introduced by Assembly Member Daly, seeks to amend Section 23502 of the Business and Professions Code concerning the regulation of craft distillers in California. The bill allows the Department of Alcoholic Beverage Control to continue issuing a craft distillers license, which permits individuals to engage in the commercial manufacture of distilled spirits. Notably, the bill does not introduce any substantive changes to the existing framework but makes nonsubstantive adjustments intended to clarify the language and provisions associated with the craft distilling industry.
While AB 2754 itself does not incite substantial controversy, there may be ongoing discussions within the craft distilling community regarding the limitations placed on production and distribution. Industry stakeholders may express concerns over the caps on production that could hinder growth potential for smaller distilleries. Furthermore, the restrictions around affiliate relationships have been a point of debate, particularly among those advocating for greater market access and collaborative opportunities within the alcoholic beverage industry.