BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 636
          Author:   Hall (D)
          Amended:  8/15/13 in Senate
          Vote:     21


           SENATE GOVERNMENTAL ORGANIZATION COMMITTEE  :  11-0, 6/11/13
          AYES:  Wright, Nielsen, Berryhill, Calderon, Cannella, Correa,  
            De León, Galgiani, Hernandez, Lieu, Padilla

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 6/24/13
          AYES:  De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg

           ASSEMBLY FLOOR  :  75-0, 5/9/13 (Consent) - See last page for vote


           SUBJECT  :    Alcoholic beverages:  tied-house restrictions

           SOURCE  :     Author


           DIGEST  :    This bill permits a winegrower, California  
          winegrower's agent, importer, or other specified parties  
          appearing at an instructional event, as specified, to provide  
          autographs to consumers or consumer advertising specialties  
          given by the person to a consumer or on any item provided by a  
          consumer; and prohibits a requirement of the purchase of any  
          alcoholic beverage in connection with such autographing.

           Senate Floor Amendments  of 8/15/13 place the contents of this  
          bill in a more appropriate Section of the Alcoholic Beverage  
          Control Act (ABC Act) relating to "winemaker's instructional  
          events."
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                                                                     AB 636
                                                                     Page  
          2




           ANALYSIS  :    

          Existing law:

          1.Permits a winegrower, California winegrower's agent, wine  
            importer, or other specified parties to conduct or participate  
            in, and serve wine at, an instructional event for consumers  
            held at a retailer's premises featuring wines produced by or  
            for the winegrower or, imported by the wine importer.

          2.Prohibits a premium, gift, free goods, or anything of value  
            from being given away in connection with the instructional  
            event by the winegrower, California winegrower's agent, wine  
            importer, or retailer, except as authorized.

          3.Specifies that no alcoholic beverages may be given away in  
            connection with the instructional event except that minimal  
            amounts of wine, taken from the barrels or from tanks, may be  
            supplied and provided as samples at the instructional event.   
            Specifies that an authorized person may provide no more than  
            three one-ounce tastes of wine per consumer at the  
            instructional event from the bottles of wine provided by the  
            authorized person.  Minimal amounts of the samples or tastes  
            provided at the instructional event do not constitute a thing  
            of value.  Following the instructional event, any unused wine  
            provided by the authorized person shall be removed from the  
            retailer's premises by the authorized person.

          4.Provides that no alcoholic beverages may be sold at the  
            instructional event, except that orders for the sale of wine  
            may be accepted by the winegrower if the sales transaction is  
            completed at the winegrower's premises.


          5.Provides that a violation of any of the provisions of the ABC  
            Act, for which another penalty or punishment is not  
            specifically provided, is a misdemeanor.


          This bill:


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                                                                     AB 636
                                                                     Page  
          3

          1.Permits, a winegrower, California winegrower's agent,  
            importer, or other specified parties appearing at an  
            instructional event, as specified, to provide autographs to  
            consumers or consumer advertising specialties given by the  
            person to a consumer or on any item provided by a consumer.

          2.Prohibits a requirement of the purchase of any alcoholic  
            beverage in connection with the autographing.


           Prior Legislation
           
          AB 2184 (Hall, Chapter 480, Statutes of 2012) created a new  
          tied-house exception in the ABC Act that authorizes, until  
          January 1, 2016, wine, beer and spirits producers to participate  
          in promotional events held at an off-sale retail licensed  
          location for the purpose of providing autographs on bottles or  
          other items to consumers.

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

          According to the Senate Appropriations Committee, the Department  
          of Alcoholic Beverage Control indicates the need for one PY  
          (personnel year) annually in the Trade Enforcement Unit at a  
          cost of $98,000 (Special).

           SUPPORT  :   (Verified  8/19/13)

          Family Winemakers of California
          Wine Institute

           ARGUMENTS IN SUPPORT  :    The author's office notes that this  
          bill is a modest extension of AB 2184 (Hall).  AB 636 simply  
          provides an opportunity for a consumer to obtain an autograph on  
          a bottle at an additional type of event, namely an instructional  
          "winemaker dinner" - conducted at a bona fide eating venue which  
          holds an on-sale license.  The author's office emphasizes that  
          existing law contains built-in safeguards.  Wine producers are  
          expected to use this new marketing tool to build brand awareness  
          and loyalty.

           ASSEMBLY FLOOR  :  75-0, 5/9/13
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  

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                                                                     AB 636
                                                                     Page  
          4

            Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,  
            Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway,  
            Cooley, Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier,  
            Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray,  
            Grove, Hagman, Hall, Harkey, Roger Hernández, Jones,  
            Jones-Sawyer, Levine, Linder, Lowenthal, Maienschein, Mansoor,  
            Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi,  
            Nazarian, Nestande, Olsen, 
          Pan, Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva,  
            Rendon, Salas, Skinner, Stone, Ting, Torres, Wagner, Weber,  
            Wieckowski, Wilk, Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Donnelly, Holden, Logue, Waldron, Vacancy


          MW:ej  8/20/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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