California Lawmakers Propose Bill Allowing Small Wineries to Sell at Farmers Markets

California’s wine industry is facing a period of significant decline, with small wineries struggling to stay afloat as wine consumption drops across the United States. In response, a new bill introduced in the California state legislature aims to give these producers a lifeline by allowing them to sell their wines and host tastings at local farmers markets.

Senate Bill 917, authored by San Luis Obispo County Senator John Laird, seeks to expand opportunities for boutique and small-scale winemakers. The bill would allow wineries that source some of their grapes from outside their own vineyards to participate in certified farmers markets. Under current law, only estate wineries—those that grow all their own grapes on site—are permitted to sell at these markets. This restriction has limited participation to just two out of 586 licensed wineries in San Luis Obispo County, according to Laird.

Laird said he introduced the legislation because the state’s wine industry is experiencing one of its most challenging periods in decades. “Small wineries are closing, vineyards are being removed and growers are leaving fruit on the vine,” he said in a recent news release. Data from WSWA SipSource shows that U.S. wine sales fell by 8.5% during the first nine months of 2025.

The proposed bill would also change how many wineries can offer tastings at a single market. Currently, only one permit for instructional wine tastings is allowed per market, regardless of its size. SB 917 would let market operators decide which and how many wineries can participate, giving more flexibility and potentially increasing consumer access to local wines.

To address concerns about alcohol service, the bill requires that winery employees pouring tastings at farmers markets hold valid alcohol server certifications. A designated person must also be present to oversee all alcoholic service during market hours.

Local winemakers have expressed cautious optimism about the proposal. Drew Nenow, co-owner of Nenow Family Wines in Templeton, produces about 1,500 cases per year using grapes from the Paso Robles region. He said he is open to selling at farmers markets if the bill passes but remains unsure whether these venues are ideal for wine sales since most shoppers come for groceries rather than tastings. Still, Nenow sees value in any opportunity that allows small wineries to connect directly with consumers.

The Paso Robles Wine Country Alliance supports the legislation, noting that 80% of Paso Robles wineries produce fewer than 8,000 cases annually and rely heavily on direct-to-consumer sales. Krista Smith, a spokesperson for the Alliance, said that access to farmers markets could help small wineries reach both existing enthusiasts and new customers who might not visit traditional tasting rooms.

SB 917 has received sponsorship from the Family Winemakers of California and the California Association of Winegrape Growers. So far, there has been no major opposition to the bill. If passed by the legislature and signed into law, it will take effect on January 1, 2027.

Farmers markets like the one held every Saturday at Templeton Park have become important community gathering spots where local producers can interact with residents and visitors alike. Supporters of SB 917 believe that opening these venues to more wineries could help preserve California’s agricultural heritage while providing much-needed support for small businesses during a difficult time for the industry.