BILL NUMBER: AB 346 CHAPTERED 09/30/08 CHAPTER 624 FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2008 APPROVED BY GOVERNOR SEPTEMBER 30, 2008 PASSED THE SENATE AUGUST 20, 2008 PASSED THE ASSEMBLY AUGUST 28, 2008 AMENDED IN SENATE AUGUST 18, 2008 AMENDED IN SENATE JULY 2, 2008 AMENDED IN SENATE JULY 3, 2007 AMENDED IN ASSEMBLY JUNE 6, 2007 AMENDED IN ASSEMBLY MAY 1, 2007 AMENDED IN ASSEMBLY APRIL 18, 2007 INTRODUCED BY Assembly Members Beall and Saldana FEBRUARY 14, 2007 An act to add Section 25205 to the Business and Professions Code, relating to alcoholic beverages. LEGISLATIVE COUNSEL'S DIGEST AB 346, Beall. Alcoholic beverages: labels. The Alcoholic Beverage Control Act, administered by the Department of Alcoholic Beverage Control, regulates the sale and distribution of alcoholic beverages and the granting of licenses for the manufacture, distribution, and sale of alcoholic beverages within the state. The act also provides for specified labeling requirements for containers of alcoholic beverages sold within this state, as provided. This bill would require the container of any beer or alcoholic beverage that derives 0.5% or more of its alcoholic content by volume from flavors or other ingredients containing distilled alcohol and that is sold by a manufacturer or importer to a wholesaler or retailer within this state to bear a label or a firmly affixed sticker that includes specified information regarding its alcohol content and its status as an alcoholic beverage. This bill also makes findings and declarations with regard to the need for these labeling requirements. The Alcoholic Beverage Control Act provides that a violation of its provisions is a misdemeanor, unless otherwise specified. This bill, by creating a new crime, would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) Many alcoholic beverages currently available in California are packaged and labeled in a manner that is similar to packaging and labels used for nonalcoholic beverages and products like energy drinks, colas, sodas, fruit drinks, and gelatins. (b) This packaging and labeling practice has the potential for confusing underage youth, parents, teachers, law enforcement personnel, retail employers that sell alcoholic beverages, and other members of the public regarding the alcoholic content of these beverages. (c) Ensuring that underage youth, parents, teachers, law enforcement personnel, retail employees that sell alcoholic beverages, and other members of the public are able to readily discern the fact that a particular product contains alcohol and the amount of alcohol the beverage contains is a high priority for California. California currently regulates information, including information regarding the contents of the container, located on containers of alcoholic beverages sold within the state. (d) The purpose of Section 25205 of the Business and Professions Code is to provide additional consumer information regarding the alcohol content on the container of specified alcoholic beverages as a means to reduce potential consumer confusion and is not intended to provide health information or a warning. SEC. 2. Section 25205 is added to the Business and Professions Code, to read: 25205. (a) Any container of beer or alcoholic beverage, other than sake, that is approved for labeling as a malt beverage under the Federal Alcohol Administration Act (27 U.S.C. Sec. 201 et seq.), that derives 0.5 percent or more of its alcoholic content by volume from flavors or other ingredients containing distilled alcohol and that is sold by a manufacturer or importer to a wholesaler or retailer within this state on or after July 1, 2009, shall bear a distinctive, conspicuous, and prominently displayed label, or firmly affixed sticker, containing the following information: (1) The percentage alcohol content of the beverage by volume. (2) The phrase "CONTAINS ALCOHOL" in bold capitalized letters at least three millimeters in height and that is distinguishable from the background and placed conspicuously in either horizontal or vertical lettering on the front of the brand label. A firmly affixed sticker need not be placed on the brand label provided it is placed on the front of the container. (b) The department may require licensees to submit information as it determines to be necessary, and may adopt regulations as may be required, to implement and enforce this section. The regulations shall be for the limited purpose of ensuring compliance with this section and shall not place additional requirements on the label or sticker required by this section. Any information required to be provided by any licensee to the department pursuant to this section shall be considered confidential and corporate proprietary information. This information shall not be subject to disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code). (c) It is the exclusive purpose of this section to identify and specially label products described in subdivision (a) and not to classify these specially labeled products. Nothing in this section shall be construed to permit the classification of any product in a manner that is inconsistent with the definitions of beer, wine, and distilled spirits set forth in Chapter 1 (commencing with Section 23000) of this division. SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 25205 to the Business and Professions Code, imposes a limitation on the public's rights of access to the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest: In order to facilitate manufacturer and importer participation in the labeling program, it is necessary to protect the confidentiality of trade secrets. SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.