BILL ANALYSIS
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THIRD READING
Bill No: AB 1470
Author: Evans (D)
Amended: 8/26/09 in Senate
Vote: 21
SEN. GOVERNMENTAL ORGANIZATION. COMMITTEE : 11-0, 7/8/09
AYES: Wright, Harman, Benoit, Calderon, Denham, Florez,
Negrete McLeod, Padilla, Price, Wyland, Yee
NO VOTE RECORDED: Oropeza, Wiggins
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 7 8-0, 6/1/09 - See last page for vote
SUBJECT : Alcoholic beverage licensees
SOURCE : Author
DIGEST : This bill 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.
Senate Floor Amendments of 8/26/09 conform the issuance of
a duplicate winegrower's license (Type 02 Duplicate) to
existing Department of Alcoholic Beverage Control
practices.
ANALYSIS : Existing law establishes the Department of
CONTINUED
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Alcoholic Beverage Control (ABC) and grants its executive
authority to administer the provisions of the Alcoholic
Beverage Control Act (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.
Existing law (ABC Act), Section 23390 of the Business and
Professions (BPC), authorizes a licensed winegrower or
brandy manufacturer, in addition to exercising all the
privileges of his/her license at his/her licensed premises,
to also exercise all of those license privileges at or from
branch offices or warehouses, or United States bonded wine
cellars located away from his/her place of production or
manufacture, other than the production or manufacture, the
sale of wine to consumers for consumption on the licensed
premises, the sale of wine or brandy to consumers for
consumption on the premises in a bona fide eating place,
and the sale or delivery of wine to consumers in containers
supplied, furnished, or sold by the consumer.
In addition, this statute requires the Department of ABC,
upon request, to issue to a winegrower or brandy
manufacturer a "duplicate" license for a location(s) other
than the licensee's premises. The law provides that this
duplicate license must be issued "forthwith" and that for
30 days from the date of the issuance of the duplicate
license no retail sales shall be made at any branch office
for which the duplicate winegrower's license or duplicate
brandy manufacturer's license is issued.
Existing law provides for various license types and
privileges. A Type 02 license which is applicable to a
winegrower (winery) generally authorizes the sale of wine
and brandy to any person holding a license authorizing the
sale of wine and brandy, and to consumers for consumption
off the premises where sold. A Type 02 also authorizes the
sale of all wines and brandies, regardless of source, to
consumers for consumption on the premises in a bona fide
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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.
This bill:
1. Authorizes an on-sale beer and wine public premises
licensee and a licensed winegrower who exercises his/her
license privileges at specified locations to allow a
person who has purchased and partially consumer a bottle
of wine to remove the partially consumed bottle from the
premises upon departure.
2. Eliminates the existing requirement in BPC Section 23390
that the Department of ABC issue a Type 02 duplicate
license "forthwith" upon receipt of the application.
(This change would essentially provide that Type 02
duplicate license applications may be approved by ABC
only after the customary 30-day public notice process
that applies to the master license).
3. Eliminates the existing requirement in BPC Section 23390
that for 30 days from the date of issuance of the
duplicate license, no retail sales of wine or brandy
shall be made at any branch office for which a duplicate
license is issued.
4. Extends the wine-by-the-glass privilege that a Type 02's
master license now has to its duplicate license. [This
provision is a clean-up to AB 2004 (Evans), Chapter 127,
Statutes of 2008, which expressly prohibited the sale of
wine for consumption on the premises of a winegrower's
branch office (Type 02 Duplicate) location.]
Prior legislation . AB 2004 (Evans), Chapter 127, Statutes
of 2008, amended several existing provisions of the ABC Act
related to the privileges of a winegrower's license.
Specifically, AB 2004 amended BPC Section 23358 to expand a
winegrower's (Type 02) license privileges by allowing the
sale of wine to the general public for consumption on the
master (or production) premises. This change essentially
allowed a winegrower to sell wine to consumers
by-the-bottle or by-the-glass for consumption in approved,
licensed areas. A winegrower who desires to expand the
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boundaries of his or her master premises to exercise
license privileges in a currently unlicensed area adjacent
to the premises, such as a picnic area, garden or patio,
must submit a request to the ABC for approval of such
expansion.
Additionally, AB 2004 amended BPC Section 23390 to
expressly prohibit the sale of wine for consumption on the
premises of a winegrower's branch office (Type 02
Duplicate) location. (This restriction does not apply to
the sale of tastes of wine.)
Furthermore, AB 2004 amended BPC Section 23396.5 to allow a
consumer to remove a partially consumed bottle of wine from
the winegrower's master premises, as currently allowed for
on-sale restaurant premises.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/26/09)
Family Winemakers of California
Wine Institute
ARGUMENTS IN SUPPORT : According to the author's office,
this bill 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 bill extends this same take home
privilege to wine bar customers.
Proponents of this bill 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
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beer and wine public premise licenses (Type 42) in the
state. The 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.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Bill Berryhill,
Tom Berryhill, Blakeslee, Blumenfield, Brownley,
Buchanan, Caballero, Charles Calderon, Carter, Chesbro,
Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,
Duvall, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,
Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,
Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,
Huber, Huffman, Jeffries, Jones, Knight, Krekorian, Lieu,
Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Monning,
Nava, Nestande, Niello, Nielsen, John A. Perez, V. Manuel
Perez, Portantino, Price, Ruskin, Salas, Saldana, Silva,
Skinner, Smyth, Solorio, Audra Strickland, Swanson,
Torlakson, Torres, Torrico, Tran, Villines, Yamada, Bass
NO VOTE RECORDED: Beall, Block
TSM:cm 8/28/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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