BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1470
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1470 (Evans)
          As Amended  September 2, 2009
          Majority vote
           
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          |ASSEMBLY:  |78-0 |(June 1, 2009)  |SENATE: |40-0 |(September 9,  |
          |           |     |                |        |     |2009)          |
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           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
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          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
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           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
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          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