As we look forward to 2022, we have summarized key alcoholic beverage legal changes in California from the past year that may affect your business.

The below list of alcoholic beverage laws either went into effect immediately late in 2021 or went into effect on January 1, 2022. The legal changes span from extending pandemic relief to permitting licensed wineries to open an additional off-site tasting room, to legalization of to-go cocktails, to eased restrictions on charitable giving, among many others. If your business involves the manufacture or sale of alcoholic beverages, odds are good these changes affect you. As always if you have any questions regarding these new laws or the potential effect of these changes to your business, facility, or products, please contact our California alcoholic beverage attorneys.

Assembly Bill 61 – Business Pandemic Relief

Bus. & Prof. Code § 25750.5: On October 8, 2021, effective immediately, and for up to 365 days from the date the COVID-19 pandemic state of emergency proclaimed by the Governor is lifted, the Department of Alcoholic Beverage Control (ABC) may permit licensees to exercise license privileges in an expanded licensed area.

Previously, it was unlawful for a licensee of the ABC to sell or serve alcoholic beverages outside of the licensed establishment’s approved footprint, with few exceptions. The ABC, pursuant to emergency orders of the Governor relating to COVID-19, has established temporary relief measures to suspend certain legal restrictions relating to expansion of licensed footprint, sales of to-go alcoholic beverages, and delivery privileges. A.B. 61 specifically authorizes the ABC to permit licensees to exercise their license privileges in an expanded area for up to 365 days after the end of the state of emergency proclaimed by the Governor. This expanded area includes on-sale consumption of alcohol on property controlled by the licensee adjacent to licensed premises.
Continue Reading Cheers to a New Year: California’s New Alcoholic Beverage Laws for 2022

As part of implementation of its Final Adopted Winery General Order, the State Water Resources Control Board (“SWRCB” or “Board”) will be holding a Winery General Order Fees Stakeholder Meeting on March 15 from 1:00-3:00 PM via Webcast. The updated notice for the Fees Stakeholder Meeting can be found here.

In addition

In July, we blogged about the State Water Resources Control Board’s (“State Water Board’) release of proposed General Waste Discharge Requirements for Winery Process Water Treatment Systems (see: July 15, 2020 blog post on proposed General Order and July 20, 2020 blog post on noticed stakeholder meetings).  The State Water Board recently issued a revised

As a follow-up to our July 15, 2020 blog post regarding the State Water Resources Control Board’s (State Water Board) release of proposed General Waste Discharge Requirements for Winery Process Water Treatment Systems (proposed General Order), today the State Water Board issued a public notice regarding the first stakeholder meeting to discuss fees

On July 3, 2020, the State Water Resources Control Board (State Water Board) released proposed General Waste Discharge Requirements for Winery Process Water Treatment Systems (proposed General Order) along with the draft California Environmental Quality Act (CEQA) Initial Study and Mitigated Declaration for public comment.  The proposed General Order will apply statewide, and includes requirements to ensure winery operations will not adversely impact water quality. The State Water Board also noticed a July 22, 2020 public workshop and future proposed adoption of the proposed General Order.  The July 22, 2020 public workshop will begin at 9:30 a.m. via remote attendance only.  Although a quorum of the State Water Board will be present at the public workshop, no final action will be taken at the workshop.
Continue Reading California Wineries Take Note: State Water Board Releases Draft General Order for Winery Process Water for Public Comment

The California Court of Appeal recently handed a victory to winemakers, ruling that a specific Proposition 65 (“Prop. 65”) warning is not required regarding the presence of inorganic arsenic. The lawsuit, Charles et al. v. Sutter Home Winery et al., was originally filed in 2015 and alleged that wines made by over 15 named defendants exposed consumers to inorganic arsenic without the correct Prop. 65 warning.

Inorganic arsenic is a chemical identified by the State of California as a carcinogen and reproductive toxicant, and plaintiffs argued that defendants’ products required a specific warning to inform consumers about exposure to inorganic arsenic. Defendants prevailed on demurrer because the trial court found that the existing “safe harbor” warnings for alcoholic beverages complied with California’s Prop. 65 warning requirement as a matter of law, and that no additional warning for inorganic arsenic was required. In other words, the trial court determined that Prop. 65 does not require both a general warning and specific warning for an alcoholic beverage product. Plaintiffs subsequently appealed.
Continue Reading A Prop. 65 Win for Winemakers: No Separate Warning Required for Inorganic Arsenic

The Alcohol and Tobacco Tax and Trade Bureau (TTB) issued a notice yesterday stating that it will consider waiving – on a case-by-case basis – late filing, payment or deposit penalties for taxpayers unable to file payment of Federal excise taxes due to the August 24, 2014, Northern California earthquake. Text of the statement follows below.Continue Reading TTB Will Consider Penalty Waivers for Late Payment of Excise Taxes By Businesses Impacted by Northern California Earthquake

My colleagues Ryan Waterman and Parissa Ebrahimzadeh have evaluated the potential impacts of the new California industrial storm water permit on breweries, distilleries, and wineries in the state.  See below for their report.

On April 1, 2014, the California State Water Resources Control Board (“State Board”) unanimously adopted a new Industrial Storm Water permit (2014 Permit). You can find the new Industrial Storm Water permit and supporting documents here, along with a change sheet also adopted by the State Board.

By way of background, the federal Clean Water Act prohibits certain discharges of storm water containing pollutants except in compliance with a permit. The 2014 Permit is a state-wide permit (called a “general” permit) for all covered industrial facilities in California. Covered industrial facilities must comply with the 2014 Permit when it comes into force in order to be in compliance with the Clean Water Act. 

The 2014 Permit completely re-writes the prior 1997 Industrial Storm Water permit (1997 Permit), and includes many substantive changes. In particular, the 2014 Permit will vastly increase the number of industries affected and impose new and increased compliance requirements.

That is one reason why California breweries, distilleries, and wineries need to know about the 2014 Permit.Continue Reading Why California Breweries, Distilleries, and Wineries Need to Know About California’s New Industrial Storm Water Permit

In a recent 3-0 decision, a California Appeals Court sided with Freemark Abbey Winery in its attempt to move its wine store and tasting room into a building in St. Helena which already contained a restaurant. The decision reversed the district courts granting of a preliminary injunction which would have stopped Freemark’s move entirely until