(a)
The department may issue a craft distiller’s license to a person that has facilities and equipment for the purposes of, and is engaged in, the commercial manufacture of distilled spirits. The craft distiller’s license authorizes the licensee to do all of the following:
(1)
Manufacture distilled spirits. A licensed craft distiller may manufacture up to 100,000
gallons of distilled spirits per fiscal year (July 1 through June 30), excluding brandy the craft distiller manufactures or has manufactured for them pursuant to a brandy manufacturer license, as reported to the department in the manner prescribed by the department for the fiscal year prior to the date of submitting an application for the license.
(2)
Package, rectify, mix, flavor, color, label, and export only those
distilled
spirits manufactured by the licensee.
(3)
Only sell distilled spirits that are manufactured and packaged by the licensee solely to a wholesaler, manufacturer, winegrower, manufacturer’s agent, or rectifier that holds a license authorizing the sale of distilled spirits or to persons that take delivery of those distilled spirits within this
state for delivery or use without the state.
(4)
Deal in warehouse receipts.
(b)
A craft distiller’s license shall not be issued to any person, any officer, director, employee, or agent of such person, or any person who is affiliated with, directly or indirectly, a person that manufactures or has manufactured for them more than 100,000 gallons of distilled spirits per year within or without the state, excluding brandy it manufactures or has manufactured for them pursuant to a brandy manufacturer license, or to any person that is affiliated with, directly or indirectly, a wholesaler.
(c)
(1)The fee for an original craft distiller’s license issued pursuant to this section shall be
consistent with the distilled spirits manufacturer’s license and shall be adjusted pursuant to subdivisions (b) and (c) of Section 23320.
(2)
The annual license fee for a craft distiller’s license shall be consistent with the distilled spirits manufacturer’s license and shall be adjusted pursuant to subdivisions (b) and (c) of Section 23320.
(3)
All moneys collected as fees pursuant to this section shall be deposited in the Alcohol Beverage Control Fund as provided in Section 25761.
(d)
A licensed craft distiller shall report to the department, at the time
of renewal in the manner prescribed by the department, the amount of distilled spirits manufactured, excluding brandy manufactured by or for the licensee pursuant to a brandy manufacturer license, during the previous fiscal year. If the report to the department establishes that the licensee no longer qualifies to hold a craft distiller’s license, the department shall renew the license as a distilled spirits manufacturer’s
license.