BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 32| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED SB 32 Page 2 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 CONTINUED SB 32 Page 3 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 **** END **** CONTINUED