BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1101
                                                                  Page  1

          Date of Hearing:   June 16, 2010

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                                   Joe Coto, Chair
                   SB 1101 (Wiggins) - As Amended:  March 23, 2010

           SENATE VOTE  :   33-0
           
          SUBJECT  :   Alcoholic beverage control:  instructional events:  
          wine

           SUMMARY  :  Clarifies that winemakers who participate in  
          instructional events or meet the winemaker dinners, held at a  
          retailers licensed premises for consumers, may offer minimal  
          samples of wine from bottles.  Specifically,  this bill  :

          1)Modifies an existing provision of the ABC Act which allows  
            winemakers participating in instructional events for consumers  
            at a retailer's premises to offer samples of wine from barrels  
            or tanks to also allow for wine samples (no more than three  
            one-ounce tasting per consumer) at the event from "bottles" of  
            wine provided by the winemaker.

          2)Provides that minimal amounts of the samples or tastes  
            provided at the instructional event do not constitute a thing  
            of value.

          3)Stipulates that any unused wine provided by the winemaker for  
            the instructional event must be removed from the retailer's  
            premises by the winemaker.
           
          EXISTING LAW  :

          1)Establishes the Department of Alcoholic Beverage Control (ABC)  
            and grants it exclusive authority to administer the provisions  
            of the ABC Act in accordance with laws enacted by the  
            Legislature.  

          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  
            off-sale).  

          3)Permits an on-sale retail licensee of wine or distilled  








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            spirits to conduct "instructional" consumer tastings on the  
            licensed retail premise provided the following conditions are  
            met:  (1) no more than ounce of distilled spirits is offered  
            in one tasting; (2) no more than one ounce of wine is offered  
            in one tasting; and, (3) no more than three tastings are  
            offered to an individual in one day.  An instruction may  
            include the history, nature, values and characteristics of the  
            product being offered, and the methods of presenting and  
            serving the product.  

          4)Authorizes beer manufacturers and wholesalers to offer beer  
            samples (not to exceed 8 ounces per person, per day) to  
            individuals of legal drinking age at on-sale retail licensed  
            premises under specified conditions.
                     
           5)Permits a licensed winegrower, manufacturer, importer, or  
            wholesaler to provide samples of the alcoholic beverages which  
            are authorized to be sold by the licensee in accordance with  
            rules prescribed by the ABC.  A retail licensee, however, is  
            not authorized to provide any free samples of alcoholic  
            beverages.  Moreover, ABC regulations provide that samples of  
            alcoholic beverages may only be given away to licensees or  
            employees of licensees who are in a position to purchase the  
            product or who are in need of additional information about the  
            product, as specified.
           
          FISCAL EFFECT  :   Unknown.

           COMMENTS  :  

          Winemakers are currently allowed to conduct and participate in,  
          and serve wine at, instructional events and "meet the winemaker  
          dinners" held at a retailer's premises featuring wines produced  
          by or for the winegrower or, imported by the wine importer,  
          provided the wine samples are taken from "barrels" or from  
          "tanks."  This bill simply clarifies that winemakers  
          participating in such events may also offer samples of wine  
          (three one-ounce tastes) from bottles. 
           
          Prior Legislation  :  AB 611 (Cortese) Chapter 394, Statutes of  
          1993, provided that an adult resident of California may apply  
          for a permit to receive, under specified conditions, a shipment  
          of wine (not more than nine liters in any calendar month) from  
          another state that allows adult residents of that state to  
          receive shipments of wine from California.  Also, deleted the  








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          requirement that wine taken from barrels or tanks, and sampled  
          at winemaker dinners, be the same wine used to blend the bottled  
          wine featured at the dinners.

          AB 2868 (Floyd) Chapter 471, Statutes of 1992, authorized a  
          winegrower, California winegrower's agent, importer, or their  
          specified representatives, to participate as described, in an  
          instructional event for consumers held at a retailer's premises  
          featuring wines produced by or for         the winegrower or  
          imported by the importer, under specified conditions.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Family Winemakers of California
          Wine Institute
           
            Opposition 
           
          None on file

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