BILL ANALYSIS Ó AB 647 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 647 (Chesbro) As Amended August 14, 2013 Majority vote. ----------------------------------------------------------------- |ASSEMBLY: |75-0 |(May 9, 2013) |SENATE: |39-0 |(August 26, | | | | | | |2013) | ----------------------------------------------------------------- Original Committee Reference: G.O. SUMMARY : 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; and makes technical code maintenance changes. 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 a beer manufacturer or brewpub-restaurant licensee to AB 647 Page 2 serve beer produced by the manufacturer or brewpub-restaurant licensee to attendees at a meeting of a bona fide beer manufacturer or brewer's guild held on the premises of a beer manufacturer. The Senate amendments : 1)Allow a licensed beer manufacturer or a brewpub-restaurant licensee to serve, for consumption on the premises, beer produced by the licensed beer manufacturer or brewpub-restaurant licensee to attendees at a meeting of a bona fide beer manufacturer trade association or brewers' guild held on the premises of a licensed beer manufacturer. 2)Make technical code maintenance changes. 3)Add coauthor's. AS PASSED BY THE ASSEMBLY , this bill clarified the Department of Alcoholic Beverage Control's (ABC's) current labeling requirements for refilled beer containers. In addition, this bill clarifies that a beer manufacturer means any person that has facilities and equipment for the purposes of, and is engaged in the commercial manufacture of beer. FISCAL EFFECT : According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. COMMENTS : This bill, as amended in the Senate is consistent with Assembly actions. Purpose of the bill : 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 AB 647 Page 3 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. Furthermore, this measure would add language to existing law to allow a beer manufacturer or brewpub-restaurant licensee to serve beer produced by the manufacturer or brewpub-restaurant licensee to attendees at a meeting of a bona fide beer manufacturer or brewer's guild held on the premises of a beer manufacturer. Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531 FN: 0001870