If passed, AB 1246 would significantly impact state laws governing the sale of alcoholic beverages by expanding the rights of craft distillers regarding direct shipping. The bill raises the allowed limit for craft distillers to sell prepackaged distilled spirits from 2.25 liters to 4.5 liters per day per consumer. Furthermore, it will formalize the shipping process for out-of-state distillers, allowing them to compete more effectively within the California market. The continuation of current direct shipping provisions until January 1, 2027, provides an avenue for the law to evolve based on consumer behavior and market trends.
Summary
Assembly Bill 1246, introduced by Assembly Member Hoover, seeks to amend various sections of the Business and Professions Code related to the regulation of alcoholic beverages, specifically focusing on distilled spirits. The bill permits licensed craft distillers and qualifying out-of-state distillers to directly ship distilled spirits to consumers under specific conditions, including compliance with the acquisition of a distilled spirits direct shipper permit. This legislation aims to allow more flexibility for craft distillers while ensuring compliance with state regulations governing the sale and shipment of alcohol.
Sentiment
The general sentiment surrounding AB 1246 appears to be supportive among those advocating for craft distillers and promoting local business interests. Proponents argue that the bill encourages economic growth within the craft distilling sector and supports small businesses competing against larger, established entities. However, there are concerns among regulatory bodies and public health advocates regarding the potential for increased underage consumption and the complications surrounding logistics and enforcement in the shipment of alcohol, which could contribute to a nuanced debate during legislative discussions.
Contention
Notable points of contention include the balance between supporting craft distiller growth and protecting public health. While proponents emphasize streamlining processes for small businesses, opponents may argue that expanding direct shipping rights could exacerbate issues related to responsible alcohol consumption and enforcement efforts. Additionally, the bill eliminates state-mandated reimbursement for local agencies that might incur costs related to new regulations, which critics argue could shift the financial burden onto local governments without providing adequate support.