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 Page 2 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 SB 806 Page 3 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