BILL ANALYSIS Ó
AB 636
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Date of Hearing: May 1, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 636 (Hall) - As Introduced: February 20, 2013
Policy Committee: Governmental
Organization Vote: 16 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill expands a current tied-house exception by allowing,
until January 1, 2015, the appearance of a person for the
purpose of providing autographs at an instructional event for
consumers that a winegrower, winegrower's agent, importer, or
other specified party conducts, or participates in at a
retailer's premises.
FISCAL EFFECT
Costs associated with this legislation would be minor and
absorbable within existing resources.
COMMENTS
1)Purpose of bill : This bill is an extension of AB 2184 (Hall),
Statutes of 2012. This bill provides an opportunity for a
consumer to obtain an autograph on a bottle of wine at an
instructional winemaker dinner.
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 promotional events held
at an off-sale retailer such as Beverages And More or Costco.
However, a supplier or their representative may not sign
autographs 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.
2)Tied-House Laws . California's tied-house laws separate the
alcoholic beverage industry into three component parts or
AB 636
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tiers of manufacturers (including breweries, wineries, and
distilleries), wholesalers, and retailers (both on-sale and
off-sale). These laws restrict certain ownership structures
and business relationships within the alcoholic beverage
industry, and create a public policy model for the following
purposes:
To promote the State's interest in an orderly market.
To prohibit vertical integration and dominance by a
single producer.
To prohibit commercial bribery and protect the public
from predatory marketing practices.
To discourage or prevent the intemperate use of
alcoholic beverages.
The Legislature has generally prohibited forms of
cross-ownership between manufacturers and retailers, and
discouraged manufacturers from providing anything of value -
free goods, services, or advertising - to distributors or
retailers. Numerous exceptions to these restrictions have been
enacted over the years in instances where the Legislature
determined that the public's interests are protected.
1)Related Legislation . AB 2184 (Hall), Statutes of 2012,
permits, until January 1, 2015, 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.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081