BILL ANALYSIS Ó AB 636 Page 1 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 Page 2 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