BILL ANALYSIS Ó
Bill No: AB
647
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2013-2014 Regular Session
Staff Analysis
AB 647 Author: Chesbro
As Amended: June 5, 2013
Hearing Date: June 11, 2013
Consultant: Art Terzakis
SUBJECT
Alcoholic Beverages: beer manufacturers: containers
DESCRIPTION
AB 647 adds clarity to existing provisions of the Alcoholic
Beverage Control (ABC) Act relative to labeling
requirements for the refilling of off-sale consumer sized
beer containers, known as "growlers," by beer
manufacturers. Specifically, this measure:
1)Modifies the definition of "beer manufacturer" to include
only those persons that have facilities and equipment for
the purposes of, and are engaged in, the commercial
manufacture of beer.
2)Clarifies that all beer sold in California must have a
label affixed to the package or container that includes
the "brand and type of beer."
3)Requires a beer manufacturer that refills any container
supplied by a consumer to affix a label, as specified, on
the container prior to its resale to the consumer.
4)Makes it explicit that any information concerning any
beer previously packaged in the container, including, but
not limited to, information regarding the manufacturer
and bottler of the beer, or any associated brands or
trademarks must be removed or completely obscured in a
manner not readily removable by the consumer prior to
resale.
AB 647 (Chesbro) continued
Page 2
5)Prohibits a beer manufacturer from refilling a container
supplied by a consumer with a capacity of five liquid
gallons or more.
6)Also, adds a new provision to the ABC Act authorizing
beer manufacturers and members of brewers' guilds to
share samples of beer products with one another, at no
charge, during trade meetings held on the licensed
premises of a beer manufacturer.
EXISTING LAW
The enactment of the 21st Amendment to the U.S.
Constitution in 1933 repealed the 18th Amendment and ended
the era of Prohibition. Accordingly, states were granted
the authority to establish alcoholic beverage laws and
administrative structures to regulate the sale and
distribution of alcoholic beverages.
The ABC Act, administered by the Department of ABC,
regulates the sale and distribution of alcoholic beverages
and the granting of licenses for the manufacture,
distribution, and sale of alcoholic beverages within the
state.
Existing law (B&P Code Section 25200) specifies that all
beer sold in the state must have a label affixed to its
package or container with the true and correct name and
address of the manufacturer of the beer and the true and
correct name of the bottler of the beer if other than the
manufacturer.
Existing law (B&P Code Section 25203) requires every
manufacturer or bottler of beer in this state or elsewhere
whose beer is sold within the state to file with ABC the
brand name or names under which they sell or label their
beer.
Existing law also provides for specified labeling
requirements for containers of alcoholic beverages sold
within this state, as specified. For beer, current law
(B&P Code Section 25204) requires compliance with federal
regulations requiring a statement of alcohol content as a
percentage of alcohol by volume, as specified.
Existing law (B&P Code Section 25205) requires the
AB 647 (Chesbro) continued
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container of any beer or alcoholic beverage, other than
sake, that derives 0.5% or more of its alcoholic content by
volume from flavors or other ingredients containing
distilled alcohol and that is sold by a manufacturer or
importer to a wholesaler or retailer within this state to
bear a label or a firmly affixed sticker that includes
specified information regarding its alcohol content and its
status as an alcoholic beverage.
Existing law (B&P Code Section 25206) prohibits any retail
licensee from dispensing any draught beer if the
manufacturer's proper tap sign or draught beer sign is not
displayed.
Existing law (B&P Code Section 23012) defines "beer
manufacturer" to mean any person engaged in the manufacture
of beer.
Existing law (B&P Code Section 23006) defines "beer" to
mean any alcoholic beverage obtained by the fermentation of
any infusion or decoction of barley, malt, hops, or any
other similar product, or any combination thereof in water,
and includes ale, porter, brown, stout, lager beer, small
beer, and strong beer, but does not include sake, known as
Japanese rice wine. Beer aged in an empty wooden barrel
previously used to contain wine or distilled spirits shall
be defined exclusively as "beer" and shall not be
considered a dilution or mixture of any other alcoholic
beverage.
Existing law (B&P Code Section 23386) permits a holder of a
manufacturer's license to give away samples of alcoholic
beverages that are authorized to be sold by the licensee
under the rules prescribed by the Department of ABC. The
law also permits an on-sale retail licensee of wine or
distilled spirits to conduct "instructional" consumer
tastings on the licensed retail premise provided the
following conditions are met: (1) no more than ounce of
distilled spirits is offered in one tasting; (2) no more
than one ounce of wine is offered in one tasting; and, (3)
no more than three tastings are offered to an individual in
one day. An instruction may include the history, nature,
values and characteristics of the product being offered,
and the methods of presenting and serving the product.
Additionally, existing law authorizes beer manufacturers
AB 647 (Chesbro) continued
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and wholesalers to offer beer samples (not to exceed 8
ounces per person, per day) to individuals of legal
drinking age at on-sale retail licensed premises under
specified conditions.
Existing law defines an "on-sale" license as authorizing
the sale of all types of alcoholic beverages: namely, beer,
wine and distilled spirits, for consumption on the premises
(such as at a restaurant or bar). An "off-sale" license
authorizes the sale of all types of alcoholic beverages for
consumption off the premises in original, sealed
containers.
Federal Law: The Treasury Department's Alcohol and Tobacco
Tax and Trade Bureau (TTB) is responsible for implementing
and enforcing a broad range of statutory and compliance
provisions and ensuring that alcohol products are created,
labeled, and marketed in accordance with the Federal
Alcohol Administration (FAA) Act.
BACKGROUND
Purpose of AB 647: According to the author's office, this
measure is intended to address concerns relative to: (1)
the abuse of the statutory definition of "beer
manufacturer" by licensed entities that do not possess or
use facilities or equipment to actually manufacture beer
and (2) the uncertainty of labeling requirements for the
re-filling of off-sale consumer sized beer containers,
known as "growlers," by licensed beer manufacturers.
The author's office notes that a brewery as "beer
manufacturer" has both privileges and responsibilities that
accompany their licensed status in California. What
defines a "beer manufacturer" in statute is important to
state regulatory agencies and law enforcement, as well as,
industry and other stakeholders. A "beer manufacturer" is
currently defined by Business and Professions Code Section
23012 as: "any person engaged in the manufacture of beer."
The author's office states that AB 647 proposes to
strengthen the current definition of "beer manufacturer" to
ensure that the law is clear and not ambiguous and that the
licensed privileges and responsibilities of beer
manufacturers are taken seriously and not abused.
Specifically, this measure would add a requirement to
AB 647 (Chesbro) continued
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current law that a "beer manufacturer" not just be engaged
in the manufacture of beer, but that a beer manufacturer
actually has the facilities and equipment for the purposes
of, and is engaged in, the commercial manufacture of beer.
Additionally, the author's office points out that this
measure proposes to clarify under what conditions a beer
manufacturer may refill consumer beer containers for
off-sale purposes. The author's office notes that
refilling of off-sale consumer sized beer containers, known
as growlers, by beer manufacturers has become a popular way
for consumers to sample beers from different breweries in
an affordable way and offers an environmentally favorable
method of doing so. Currently, if you buy a growler
container it can only be filled with beer from the brewery
that sold that growler. Consumers would like to re-use
their containers from one brewery to the next but existing
labeling requirements and compliance with the law have
posed a barrier to refilling beer containers in California.
The author's office contends that this measure provides
the additional statutory guidance on the labeling which is
warranted and needed.
Furthermore, this measure would add language to existing
law that allows licensed manufacturers to provide free
samples, as specified, so that brewers can share tastes of
beers with each other during trade association or guild
meetings without violating their licensed privileges.
What's a Growler?: Beer aficionados note the term likely
dates back to the late 19th century when fresh beer was
carried from the local pub to one's home by means of a
small galvanized pail. It is claimed the sound that the
CO2 made when it escaped from the lid as the beer sloshed
around sounded like a growl.
A growler is typically a glass or ceramic jug with a
capacity of a gallon of beer with either a screw-on cap
or a hinged porcelain gasket cap, which can provide
freshness for a week or more. They are commonly sold at
breweries and brewpubs as a means to sell take-out craft
beer.
AB 647 (Chesbro) continued
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The ABC Act does not define the term "growler" but since a
growler is a container used to carry beer it is subject to
ABC laws that regulate beer packaging and labeling.
PRIOR/RELATED LEGISLATION
SB 533 (Knight) 2013-14 Session. Would add clarity to the
ABC Act by modifying language pertaining to labeling and
refilling requirements for returnable beer containers known
as "growlers." (Pending in Assembly policy committee)
AB 346 (Beall), Chapter 624, Statutes of 2008. Provided
that any container of beer or alcoholic beverage, other
than sake, that is approved for labeling as a malt beverage
under the Federal Alcohol Administration Act (FAAA), that
derives 0.5% or more of its alcoholic content by volume
from flavors or other ingredients containing distilled
alcohol and that is sold within this state on or after July
1, 2009, shall bear a distinctive, conspicuous, and
prominently displayed label, or firmly affixed sticker, as
defined.
SUPPORT: As of June 7, 2013:
California Craft Brewers Association
OPPOSE: None on file as of June 7, 2013.
FISCAL COMMITTEE: Senate Appropriations Committee
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