BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 647|
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THIRD READING
Bill No: AB 647
Author: Chesbro (D)
Amended: 6/26/13 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 : Senate Rule 28.8
ASSEMBLY FLOOR : 75-0, 5/9/13 (Consent) - See last page for vote
SUBJECT : Alcoholic beverages: beer manufacturers:
containers
SOURCE : Author
DIGEST : This bill adds clarity to existing provisions of the
Alcoholic Beverage Control Act (ABC Act) relative to labeling
requirements for the refilling of off-sale consumer-sized beer
containers, known as "growlers," by beer manufacturers; and the
serving of beer, as specified, by a beer manufacturer or
brewpub-restaurant licensee.
ANALYSIS :
Existing law:
1. Specifies that all beer sold in the state must have a label
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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.
2. Requires every manufacturer or bottler of beer in this state
or elsewhere whose beer is sold within the state to file with
the Department of Alcoholic Beverage Control (ABC) the brand
name or names under which they sell or label their beer.
3. Provides for specified labeling requirements for containers
of alcoholic beverages sold within this state, as specified.
For beer, requires compliance with federal regulations
requiring a statement of alcohol content as a percentage of
alcohol by volume, as specified.
4. Requires the 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.
5. Prohibits any retail licensee from dispensing any draught
beer if the manufacturer's proper tap sign or draught beer
sign is not displayed.
6. Defines "beer manufacturer" to mean any person engaged in the
manufacture of beer, and "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.
7. Allows any winegrower, beer manufacturer, or beer and wine
wholesaler to serve food and alcoholic beverages to any
person, including an alcoholic beverage licensee and his/her
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employees and representatives, who is attending a meeting
held upon or who is visiting the premises of the winegrower
or beer manufacturer.
8. 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.
This bill adds clarity to existing provisions of the ABC Act
relative to labeling requirements for the refilling of off-sale
consumer sized beer containers, known as "growlers," by beer
manufacturers. Specifically, this bill:
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.
5. Prohibits a beer manufacturer from refilling a container
supplied by a consumer with a capacity of five liquid gallons
or more.
6. Allows any winegrower, beer manufacturer, or beer and wine
wholesaler to serve food and alcoholic beverages for
consumption on the premises to any person, including an
alcoholic beverage licensee and his/her employees and
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representatives, who is attending a meeting held upon the
premises of the winegrower, beer manufacturer or beer and
wine wholesaler.
7. Allows a beer manufacturer or brewpub-restaurant licensee to
serve beer produced by the manufacturer or brewpub-restaurant
licensee for consumption on the premises to attendees at a
meeting held on the premises of a beer manufacturer.
Background
Beer aficionados note the term, "growler," 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
half 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.
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 7/2/13)
California Craft Brewers Association
ARGUMENTS IN SUPPORT : According to the author's office, this
bill 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"
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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 this bill 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 bill adds a requirement to
existing 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 bill
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 bill provides the additional
statutory guidance on the labeling which is warranted and
needed.
ASSEMBLY FLOOR : 75-0, 5/9/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
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,
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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:d 7/2/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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