BILL ANALYSIS Bill No: AB 1470 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Roderick D. Wright, Chair 2009-2010 Regular Session Staff Analysis AB 1470 Author: Evans As Amended: April 23, 2009 Hearing Date: July 8, 2009 Consultant: Art Terzakis SUBJECT Alcoholic Beverages: licensees DESCRIPTION AB 1470 permits an on-sale beer and wine public premises licensee to allow a person who has purchased and partially consumed a bottle of wine to remove the partially consumed bottle from the premises upon departure. EXISTING LAW Existing law establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. Existing law provides that any "on-sale" licensee, who maintains a bona fide eating place in conjunction with such license, or any winegrower that is exercising a privilege, as defined, may allow any person who has purchased and partially consumed a bottle of wine to remove such partially consumed bottle from the premises upon departure. The words "On-Sale" on an alcoholic beverage license means the license privilege is for alcoholic beverages sold on the premises to be consumed on the premises. (On-sale licenses also carry some off-sale privileges as specified in the ABC Act.) AB 1470 (Evans) continued Page 2 The words "Off-Sale" on an alcoholic beverage license means the license privilege is for alcoholic beverages to be sold in original, unopened packages for consumption off the premises where sold. The ABC Act defines "bona fide public eating place" to mean a place which is regularly and in a bona fide manner used and kept open for the serving of meals to guests for compensation and which has suitable kitchen facilities connected therewith, containing conveniences for cooking an assortment of foods which may be required for ordinary meals, the kitchen of which must be kept in a sanitary condition with the proper amount of refrigeration for keeping of food on said premises and must comply with all the regulations of the local department of health. BACKGROUND Purpose of AB 1470: As noted above, current law allows patrons to leave restaurants and wineries with partially consumed bottles of wine. According to the author's office, this measure is intended to fill a gap in current law in order to promote responsible consumption of alcohol by wine bar patrons. Under current law, partially consumed wine bottles can be removed from an on-sale licensed premise, only if it also contains a restaurant or if the licensee is a winegrower. In essence, a restaurant or winery customer could purchase a bottle of wine, elect to drink some of the contents, and then put the cork back in to take the bottle home to drink later. This measure would extend this same take home privilege to wine bar customers. Proponents of this measure note that in recent years Type 42 wine bars have sprung up in many urban settings and believe that wine bar patrons should be afforded the option to "brown bag" an unfinished bottle of wine. The ABC reports that there are approximately 1,400 on-sale beer and wine public premise licenses (Type 42) in the state. A Type 42 license authorizes the sale of beer and wine for consumption on or off the premises where sold. No distilled spirits may be on the premises. A large number of these licenses are operating as specialty wine shops and/or wine bars. AB 1470 (Evans) continued Page 3 PRIOR/RELATED LEGISLATION AB 2004 (Evans) Chapter 127, Statutes of 2008. Authorized licensed winegrowers to sell wine to consumers for consumption on the premises. Also, granted any winegrower the same privilege that is currently available to any on-sale licensee which maintains a restaurant, that permits the licensee to allow a patron to remove from the premises upon departure, a bottle of wine that has been opened (partially consumed). SB 1262 (Beverly) Chapter 72, Statutes of 1980. Permitted a restaurant patron who has purchased and partially consumed a bottle of wine to remove such bottle from the licensed premises. SUPPORT: As of July 3, 2009: Wine Institute Family Winemakers of California OPPOSE: None on file as of July 3, 2009. FISCAL COMMITTEE: Senate Appropriations Committee **********