(a) Notwithstanding any law, rule, or regulation to the
contrary, any person currently licensed in this state or any other
state as a winegrower who obtains a wine direct shipper permit
pursuant to this section may sell and ship wine directly to a
resident of California, who is at least 21 years of age, for the
resident's personal use and not for resale.
Before sending any shipment to a resident of California, the wine
direct shipper permitholder must:
(1) File an application with the department.
(2) Pay a ten-dollar ($10) annual registration fee if the
winegrower 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 wine direct shipper permit.
(5) Obtain a seller's permit or register with the State Board of
Equalization pursuant to Part 1 (commencing with Section 6001) of
Division 2 of the Revenue and Taxation Code.
(b) A wine direct shipper permit authorizes the permitholder to do
all of the following:
(1) Sell and ship wine to any person 21 years of age or older for
his or her personal use and not for resale.
(2) Ship wine 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 wine only if the permitholder requires the carrier to
obtain the signature of any individual 21 years of age or older
before delivering any wine 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 wine shipped into the state during the preceding calendar
year under the wine direct shipper permit.
(5) If the permitholder is located outside of this state, pay to
the State Board of Equalization all sales and use taxes, and excise
taxes on sales to residents of California under the wine direct
shipper permit. For excise tax purposes, all wine sold pursuant to a
direct shipper permit shall be deemed to be wine sold in this state.
(6) If located within this state, provide the department any
necessary additional information not currently provided to ensure
compliance with this section.
(7) Permit the department or the State Board of Equalization to
perform an audit of the wine direct shipper permitholder's records
upon request.
(8) 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 wine direct shipper permitholder located outside of the
state may annually renew its permit with the department by paying a
ten-dollar ($10) renewal registration fee and providing the
department with a true copy of its current alcoholic beverage license
issued by another state. A wine direct shipper permitholder located
in California shall renew its wine direct shipper permit in
conjunction with its master license. For purposes of this section,
"master license" means a winegrower's license issued by the
department.
(e) The department and the State Board of Equalization may
promulgate rules and regulations to effectuate the purposes of this
law.
(f) The department may enforce the requirements of this section by
administrative proceedings to suspend or revoke the wine 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 Sacramento.
(g) Sales and shipments of wine direct to consumers in California
from winegrowers who do not possess a current wine 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.