Alcoholic beverages: distilled spirits.

Hoover’s measure ties together a reworked set of winegrower and craft distiller privileges with a temporary direct-to-consumer shipping framework, positioning aging collaborations and consumer access as the centerpiece of the policy shift. The core change expands winegrower authority to possess and transport brandy for aging on the winegrower’s premises, while allowing craft distillers to transport brandy to and from winegrower premises for aging. Simultaneously, craft distillers would experience an increase in their on-site sale limit, rising from 2.25 liters to 4.5 liters per day per consumer for the distilled spirits produced at the licensee’s premises.

A new, permit-based direct shipping regime would permit craft distillers and qualifying out-of-state distillers to ship distilled spirits directly to California consumers, subject to qualifiers that include a daily shipment cap of 2.25 liters per consumer, recordkeeping, and age-verification requirements. Shipments would require a current distilled spirits direct shipper permit, with application procedures, fees, and documentation of licenses; the department would retain audit rights and enforce compliance through administrative proceedings, with hearings for out-of-state permitholders held in Sacramento. The framework also mandates conspicuous labeling on shipments and imposes penalties for shipments or sales without a valid permit. The program is explicitly temporary, sunsetting on January 1, 2027, and it includes no local reimbursement requirement.

The bill’s provisions affect craft distillers, winegrowers, out-of-state distillers, and consumers. On-site sales could expand under the higher 4.5-liter daily limit, while aging-related operations would be enabled by the new brandy-aging authorization and the ability to transport brandy between winegrowers and craft distillers. The direct shipping regime would broaden California residents’ access to distilled spirits from both local craft distillers and qualifying out-of-state producers, contingent on regulatory compliance and permit ownership. Fiscal and local impacts are noted for review, with no new state reimbursement, and enforcement and compliance rely on the Alcoholic Beverage Control’s administrative framework, including potential audits and penalties for noncompliance.

Viewed in policy context, the changes reflect a targeted modernization of licensing and distribution pathways within California’s alcoholic-beverage regime, coupling expanded production and aging flexibility with a temporary test of direct-to-consumer shipping. The sunset clause signals a finite policy window, encouraging ongoing evaluation and potential future action, while maintaining alignment with existing licensing structures and enforcement mechanisms. The measure preserves local regulatory authority where relevant and requires active permit-based oversight to manage cross-licensing, aging arrangements, and consumer access within a defined regulatory regime.