BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                    SB 32|
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                                 THIRD READING


          Bill No:  SB 32
          Author:   Leno (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  12-0, 3/22/11
          AYES:  Wright, Anderson, Berryhill, Calderon, Cannella, 
            Corbett, De León, Evans, Padilla, Strickland, Wyland, Yee
          NO VOTE RECORDED:  Hernandez

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Alcoholic beverages:  definitions:  rectifiers

           SOURCE  :     Author


           DIGEST  :    This bill adds clarity to the definition of 
          rectifier within the Alcoholic Beverage Control Act by 
          expressly excluding from the definition any on-sale 
          licensee that colors, flavors, or blends distilled spirits 
          or wine products on the licensed premises for consumption 
          on those premises. 

           ANALYSIS  :    Existing law 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.  

          Existing law defines "rectifier" to mean every person who 
          colors, flavors, or otherwise processes distilled spirits 
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          by distillation, blending, percolating, or other processes.

          Existing law defines "distilled spirits" to mean an 
          alcoholic beverage obtained by the distillation of 
          fermented agricultural products, and includes alcohol for 
          beverage use, spirits of wine, whiskey, rum, brandy, and 
          gin, including all dilutions and mixtures thereof. 

          Existing law, relating to a "distilled spirits rectifier's 
          general license," authorizes the licensee to cut, blend, 
          rectify, mix, flavor, and color distilled spirits, and 
          whether so cut, blended, mixed, flavored, or colored by him 
          or any other person to package, label, export, and sell the 
          distilled spirits to distilled spirits manufacturers, 
          distilled spirits manufacturer's agents, distilled spirits 
          wholesalers, distilled spirits general importers, 
          rectifiers, and distilled spirits general rectifiers.  

          Existing law 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 (such as 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.  

           Prior/Related Legislation

          SB 39 (Padilla), 2011-12 Session, prohibits the import, 
          production, manufacture, distribution, or sale of 
          "caffeinated" beer beverages, as defined, at retail 
          locations within the state.  (Pending in the Senate 
          Appropriations Committee)

          SB 1022 (Strickland), Chapter 281, Statutes of 2010, 
          expanded an existing tied-house exception within the ABC 
          Act to enable licensed distilled spirits "rectifiers" to 
          donate or sell their products to specified nonprofit 
          entities for the purpose of assisting in fund-raising 
          efforts.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No


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           SUPPORT  :   (Verified  4/8/11)

          California Music and Culture Association
          California Restaurant Association
          Family Winemakers of California
          Golden Gate Restaurant Association
          Small Business California


           ARGUMENTS IN SUPPORT  :    Proponents argue that the act or 
          art of mixing drinks from distilled spirits or wine for 
          consumption on licensed premises should not be considered a 
          production process requiring a separate license.  
          Proponents believe that this bill is a straightforward 
          solution that relieves a potential enforcement situation 
          for tens of thousands of license holders throughout the 
          state.  


          PQ:mw  4/11/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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