Winegrowers and brandy manufacturers: privileges off-premises.
The primary intent behind AB 720 is to clarify that the exceptions for production do not include simple storage or the topping of wine barrels. This change is crucial as it delineates activities that licensed producers can carry out in locations outside their primary production facilities, thereby potentially facilitating greater operational flexibility. By explicitly stating that mere storage does not count as production, the bill seeks to regulate more stringently how wine and brandy manufacturers manage their excess products and operations elsewhere in the state, aiming to close loopholes that may lead to regulatory non-compliance.
Assembly Bill 720, introduced by Assembly Member Rogers on February 14, 2025, seeks to amend Section 23390 of the Business and Professions Code, specifically regarding privileges for winegrowers and brandy manufacturers related to off-premises operations. Currently, the Alcoholic Beverage Control Act allows these licensed producers to conduct certain activities away from their licensed premises, including operations at branch offices and warehouses, but there are exceptions outlined for production and manufacture. The current exception is somewhat ambiguous, particularly regarding what constitutes mere 'storage' versus actual production activities.
Notable points of contention surrounding AB 720 may arise regarding its implications for local businesses and producers. Some stakeholders within the wine and brandy industries could view the increased regulatory clarity as a positive step towards ensuring fair competition and compliance. However, opposition may come from smaller producers who might feel that the new restrictions limit their operational capabilities and impose additional burdens that could affect their bottom line. The balance of regulatory authority and operational freedom remains a pivotal discussion point as the bill is debated in legislative sessions.