SB1788 Amendment Summary

• Amends the Liquor Control Act of 1934 to clarify that Commission agents cannot search private areas (safes, personal property, closed desks) without probable cause or a search warrant during inspections.

• Establishes fine structure for violations: maximum $500 per violation, $20,000 maximum per license period, with specific penalties for selling bottles with foreign objects (destruction of bottle and up to $50 fine for 11th bottle and every third bottle thereafter).

• Creates self-distribution exemptions for small wine producers (under 25,000 gallons annually) and craft brewers (under 465,000 gallons annually) to sell directly to retail licensees without using distributors, while maintaining compliance with state revenue and liquor laws.

• Requires Commission to conduct alcohol compliance operations and submit reports to state attorney general and federal authorities regarding unlicensed wine shipping and violations of direct-to-consumer sales laws.

• Mandates biennial reporting to Governor and General Assembly on impact of wine direct shipping, including tax revenues, licensing fees, number of compliance operations, and violations reported to law enforcement.