BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 806
                                                                  Page  1

          Date of Hearing:   June 30, 2010

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                                   Joe Coto, Chair
                    SB 806 (Wiggins) - As Amended:  June 22, 2010

           SENATE VOTE  :   Not relevant
           
           SUBJECT:  Alcoholic beverages: winegrowers and bottlers:  
          records.  

           SUMMARY  :   Allows for the return of wine taken out-of-state  
          where the wine was purchased from a holder of a beer and wine  
          wholesaler's license and an off-sale retail license that only  
          sells wine.  Specifically,  this bill  :   

          1)Provides that a person who has purchased wine from holder of a  
            beer and wine wholesaler's license or an off-sale retail  
            license that only sells wine, and has taken delivery of that  
            wine within this state for delivery or use, and has removed  
            that wine from the state, may return all or any portion of  
            that wine to the holder of a beer and wine wholesaler's  
            license or an off-sale retail license that only sells wine in  
            this state from whom the wine was purchased, as specified.

          2)The Alcoholic Beverage Control Act (Act) provides for  
            specified recordkeeping requirements for winegrowers and  
            bottlers of wine within specified counties.  This bill would  
            make technical, non-substantive amendments to this  
            requirement.

           EXISTING LAW  :
           
           1)Establishes the Department of Alcoholic Beverage Control (ABC)  
            and grants it exclusive     authority to administer the  
            provisions of the Act in accordance with laws enacted by the  
            Legislature.  This involves licensing individuals and  
            businesses associated with the manufacture, importation and  
            sale of alcoholic beverages in this state and the collection  
            of license fees or occupation taxes for this purpose. 

          2)Existing law, known as the "tied-house" law, separates the  
            alcoholic beverage industry into three component parts, or  
            tiers, of manufacturer (including breweries, wineries and  
            distilleries), wholesaler, and retailer (both on-sale and  








                                                                  SB 806
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            off-sale).  

          3)Allows a person who has purchased wine from a licensed  
            winegrower and has taken the wine from the state, to return  
            that wine to the licensed premises of the winegrower from whom  
            the wine was purchased.

          4)Restricts the importation of alcoholic beverages for use  
            within California unless consigned to a licensed importer (or  
            as otherwise provided) and transported by common carrier.  

          5)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.

          6)Provides for specified recordkeeping requirements for  
            winegrowers and bottlers of wine within specified counties.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :

          According to the author, this is a consumer bill which will  
          allow consumers to return wine to any winemaker without regard  
          to the winemaker's license.  Existing law only allows consumers  
          to return wine to winegrowers with an ABC Type 02 (Winegrower)  
          license.  Over the past several years hundreds of virtual  
          wineries holding a combined Type 17 and Type 20 license sell  
          wine to customers for use out of state.  The author states, a  
          license category should have no bearing on consumer's ability to  
          return wine.  Updating the law to clarify that consumers can  
          return wine to holders of Type 17 (Beer & Wine Wholesaler) and  
          Type 20 (Off-Sale Beer & Wine) licenses will clarify the law and  
          simplify the process for consumers wishing to return wine.

          In addition, this bill contains language which is technical and  
          non-substantive pertaining to specified recordkeeping  
          requirements for winegrowers and bottlers of wine within  
          specified counties.  
           
          Prior/Related Legislation :  AB 1470 (Evans), Chapter 535,  
          Statutes of 2009.  Permits an on-sale beer and wine public  








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          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.  

          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 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.
           
          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Family Winemakers of California 

           Opposition 
           
          None on file

           
          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531