BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 647
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 647 (Chesbro)
          As Amended  August 14, 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  :  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  








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            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  








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          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 


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