BILL ANALYSIS AB 1470 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1470 (Evans) As Amended September 2, 2009 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |78-0 |(June 1, 2009) |SENATE: |40-0 |(September 9, | | | | | | |2009) | ----------------------------------------------------------------- Original Committee Reference: G.O. SUMMARY : Permits an on-sale beer and wine public premises licensee and a licensed winegrower 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. Specifically, this bill : 1)Authorizes an on-sale beer and wine public premises licensee and a licensed winegrower who exercises his or her license privileges at specified locations 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. 2)Removes the prohibition against licensed winegrowers or brandy manufacturers from selling wine for consumption on the premises of a branch office. In essence, extends the wine-by-the-glass privilege that a Type 02's master license now has to its duplicate license. 3)Removes the requirement that the Department of Alcoholic Beverage Control (ABC) issue a duplicate license for a winegrower or brandy manufacturer for locations other than his or her wine production or brandy manufacture premises, and would instead provide that the department may issue the duplicate license. The Senate amendments : 1)Delete the requirement that ABC issue a duplicate license for a winegrower or brandy manufacturer for locations other than his or her wine production or brandy manufacture premises, and would instead provide that the ABC may issue the duplicate license. AB 1470 Page 2 2)Remove the prohibition against licensed winegrowers or brandy manufacturers from selling wine for consumption on the premises of a branch office. 3)Make technical and clarifying amendments to current law. EXISTING LAW : 1)Establishes ABC and grants it exclusive authority to administer the provisions of the ABC (Act) in accordance with laws enacted by the Legislature. Provides that ABC shall license individuals and businesses associated with the manufacture, importation and sale of alcoholic beverages in this state. 2)Provides any on-sale licensee, which 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. 3)Provides 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, as specified. 4)Defines an "on-sale" license as authorizing the sale of all types of alcoholic beverages: namely, beer, wine and distilled spirits, for consumption on the premises (e.g..at a restaurant or bar). An "off-sale" license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers. 5)Defines "bona fide public eating place," as licensed premises that are maintained in good faith and used for the regular service of meals to patrons. The premises must have suitable kitchen facilities and supply an assortment of foods commonly ordered at various hours of the day. AS PASSED BY THE ASSEMBLY , this bill allowed a patron to remove a partially consumed wine bottle from a licensed on-sale beer and wine premise upon departure. AB 1470 Page 3 FISCAL EFFECT : Minor and absorbable costs within ABC's existing resources. COMMENTS : According to the author, AB 1470 fills 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, which is a bona fide eating-place. 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. The author states that because of current law, wine bar patrons might feel pressured to finish a bottle of wine - especially an expensive bottle - because they would not want to waste it by leaving an unfinished amount only to be thrown away. By extending the "brown bag" privilege to wine bar patrons, this bill would not only give a consumer options but will also benefit public safety and promote temperance. In support of this measure, the Wine Institute (WI) states in recent years, Type 42 wine bars have sprung up in many urban settings. WI believes that wine bar patrons should additionally be afforded the option to "brown bag" an unfinished bottle of wine. The ABC reports that there are approximately 1,400 beer and wine public premise licenses (Type 42) in the state. A large number of these licenses are operating as specialty wine shops and/or wine bars. Additionally, the bill removes the prohibition against licensed winegrowers or brandy manufacturers from selling wine for consumption on the premises of a branch office. In essence, extends the wine-by-the-glass privilege that a Type 02's master license now has to its duplicate license. 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. Prior legislation : AB 2004 (Evans), Chapter 127, Statutes of 2008, authorized a licensed winegrower to sell wine to consumers for on-premises consumption, as specified. In addition, provided any winegrower that is exercising a privilege, as AB 1470 Page 4 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, as specified. SB 113 (Thompson), Chapter 238, Statutes of 1993, permitted a licensed winegrower (a winery) to sell wine and brandy to consumers for consumption off the premises or for consumption at a restaurant located at the winery or immediately contiguous to it. A winegrower must produce on the licensed premises not less than 50% of the wines sold to consumers. Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531 FN: 0002888