BILL ANALYSIS Ó
AB 636
Page 1
Date of Hearing: April 10, 2013
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Hall III, Isadore, Chair
AB 636 (Hall) - As Introduced: February 20, 2013
SUBJECT : Alcoholic beverages: tied-house restrictions.
SUMMARY : Would permit, until January 1, 2015, under specified
conditions, the appearance of a person for the purpose of
providing autographs at an instructional event for consumers
that a winegrower, California winegrower's agent, importer, or
other specified parties conduct, or participate in, that is held
at a retailer's premises.
EXISTING LAW :
1) Establishes the Department of Alcoholic Beverage Control
(ABC) and grants it the 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 of
manufacturer, wholesaler, and retailer. The original policy
rationale for this body of law was to prohibit the vertical
integration of the alcohol industry and to protect the public
from predatory marketing practices. Generally, other than
exemptions granted by the Legislature, the holder of one type of
license is not permitted to do business as another type of
licensee within the "Three-tier" system.
3) Permits, until January 1, 2016, the appearance of a person
employed or engaged by an "authorized licensee," as defined, at
a promotional event held at the premises of an off-sale retail
licensee for the purpose of providing autographs under specified
conditions.
FISCAL EFFECT : Unknown.
COMMENTS :
Purpose of bill : According to the author's office, under
current law wineries and other suppliers of wine, beer, and
spirits are permitted to autograph bottles for consumers at a
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promotional event held at an off-sale retailer such as BevMo or
Costco. However, a supplier or their representative may not
sign autographs of items at any other venue. AB 636 would amend
current law to include autographs at on-sale restaurants where a
winery is conducting a winemaker dinner.
In essence, the bill is a modest extension of AB 2184 (Hall)
which was enacted last year. This bill simply provides an
opportunity for a consumer to obtain an autograph on a bottle at
an additional type of event (an instructional winemaker dinner).
The author emphasizes that this measure has been carefully
crafted to include a number of well-reasoned provisions and
built-in safeguards that do not require purchase of a product,
prevent charging a fee for an autograph, and provide a
limitation on the number and duration of events. In addition,
ABC will still need to be notified in advance of any such event.
In Support : In support of this measure, the Family Winemakers
of California notes that the alcoholic beverage industry is
highly competitive with thousands of competing brands in the
wine and spirits categories. This bill will provide brand
owners and wine producers the opportunity to market their
product on a personal basis and help build brand awareness and
loyalty. Proponents also state that this bill does not change
the existing safeguards which were incorporated into last year's
autographing legislation.
Prior legislation : AB 2184 (Hall), Chapter 480, Statutes of
2012. Permits, until January 1, 2016, the appearance of a
person employed or engaged by an "authorized licensee," as
defined, at a promotional event held at the premises of an
off-sale retail licensee for the purpose of providing autographs
under specified conditions.
AB 605 (Portantino), Chapter 230, Statutes of 2010. Created a
new type of license that allows the tasting of beer, wine, and
distilled spirits at off-sale licensed premises.
AB 2293 (De Leon), Chapter 638, Statutes of 2008. Added a new
provision to the ABC Act that permits a manufacturer of
distilled spirits, winegrower, rectifier, or distiller, or its
authorized agent to provide their product, as well as
entertainment and food to consumers over 21 years of age during
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invitation-only events (free of charge). The events must occur
on premises for which a caterer's permit authorization has been
issued. The bill sunsets on January 1, 2014.
REGISTERED SUPPORT / OPPOSITION :
Support
Wine Institute
Family Winemakers of California
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531