All Bonded Wineries and Bonded Wine Cellars must complete and submit the Report of Wine Premises Operations Form 5120.17 (formerly Form 702) to TTB on a regular basis.   The report must be filed either monthly, quarterly, or annually, depending upon the size of your operations.

When are the reports due?

• Annual Report:  If you have less than 20,000 gallons of wine on hand at any time AND you also pay less than $1,000 in Federal Excise Tax each year, your Annual Report of Wine Premises Operations Form 5120.17 for 2007 is due on January 15, 2008.

• Quarterly Reports:  If you have less than 60,000 gallons of wine on hand at any time AND you also pay less than $50,000 in Federal Excise Tax each year, your Quarterly Reports of Wine Premises Operations Form 5120.17 are due on April 15, July 15, October 15 and January 15 (15 days after the close of each calendar quarter).

• Monthly Reports:  If you have more than 60,000 gallons of wine on hand at any time OR pay more than $50,000 in Federal Excise tax each year, Report Forms 5120.17 must be submitted by the 15th day after the close of any month in which you conducted reportable operations.

Assembly Bill (AB) 2004, also known as the "winery picnic bill", makes it lawful for visitors to consume a bottle of wine they've purchased on winery premises. Even though this practice had become commonplace, the regulations regarding the right (or privilege) to do so were unclear.

Wine law encompasses more than what most people realize. Here is a sampling of what a wine lawyer may do for a winery:

 A Federal District Court ruled that it is a violation of the U.S. Constitution for a state to prohibit their consumers from having wine shipped to them from out of state retailers when the state permits shipments from in-state retailers.

California's Department of Alcoholic Beverage Control has several different license types. Each license carries different basic privileges.

For example, license type #02 is a winegrower (winery) license. It authorizes:

• the sale of wine and brandy to consumers for consumption off the premises where sold.
  
• the sale of all wines and brandies, regardless of source, to consumers for consumption on the premises in a bona fide eating place that is located on the licensed premises or on premises owned by the licensee that are contiguous to the licensed premises and operated by and for the licensee.
  
• The holder of this license may possess wine and brandy for use in the preparation of food and beverage to be consumed at the bona fide eating place.
  
• It may also conduct winetastings under prescribed conditions (B&PC Section 23356.1; Rule 53).
  
• Finally, minors are allowed on the premises.

A wine sales event permit (Form ABC-239) authorizes type 02 licensees to sell bottled wine produced by the winegrower for consumption off the premises where sold and only at fairs, festivals or cultural events sponsored by designated tax exempt organizations. The licensee must notify the city and/or county where the event is being held and obtain approval from ABC for each event (Form ABC-222). The licensee must also comply with all restrictions listed in Business and Professions Code Section 23399.6.

Click here for more information on the California Department of Alcoholic Beverage Control.

There was an interesting post in December of 2005 about the growing need for wine lawyers.

Click here to visit iLawyerSource.