BILL ANALYSIS Ó
AB 636
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 636 (Hall)
As Amended August 15, 2013
Majority vote
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|ASSEMBLY: |75-0 |(May 9, 2013) |SENATE: |39-0 |(August 26, |
| | | | | |2013) |
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Original Committee Reference: G.O.
SUMMARY : Permits, under specified conditions and until January
1, 2016, 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 featuring wines produced by or for the
winegrower or, imported by the wine importer.
The Senate amendments :
1)Create a separate section in the Business and Professions Code
to allow winegrowers and wine importers appearing at
winemaker's instructional events for consumers that are held
at a retailer's licensed premises, to provide autographs to
consumers on consumer advertising specialties, as defined.
2)Make it explicit that no purchase of any alcoholic beverage
shall be required in connection with such autographing.
EXISTING LAW :
1)Establishes the Department of Alcoholic Beverage Control (ABC)
and grants it the exclusive authority to administer the
provisions of the Alcoholic Beverage Control Act (ABC Act) in
accordance with laws enacted by the Legislature.
2)Separates, under the law known as the "Tied-house" law, 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
AB 636
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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.
AS PASSED BY THE ASSEMBLY , this bill expanded a current
tied-house exception by allowing, until January 1, 2016, 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 : According to the Senate Appropriations
Committee, ABC indicates the need for one personnel year (PY)
annually in the Trade Enforcement Unit at a cost of $98,000
(Special).
COMMENTS : This bill, as amended in the Senate is consistent
with Assembly actions.
Purpose of bill : Current law permits wineries and other
suppliers of wine, beer, and spirits to autograph bottles for
consumers at a promotional event held at an off-sale retailer
(e.g., specialty wine shop, BevMo or Costco). However, a
supplier or their representative may not sign autographs of
items at any other venue. This measure would amend current law
to include autographs at an on-sale restaurant where a winery is
conducting a "winemaker dinner." The bill contains language
that makes it explicit that no purchase of any alcoholic
beverage shall be required in connection with such autographing.
The author's office notes that this measure 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, namely an
instructional "winemaker dinner" conducted at bona fide eating
venue which holds an on-sale license. The author's office
emphasizes that existing law contains built-in safeguards, as
referenced above. Wine producers are expected to use this new
marketing tool to build brand awareness and loyalty.
AB 636
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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 2293 (De León), 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
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.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0001753