BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 636| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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." CONTINUED 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: CONTINUED 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, CONTINUED 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 **** END **** CONTINUED