BILL ANALYSIS Ó
AB 779
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CONCURRENCE IN SENATE AMENDMENTS
AB 779 (Bocanegra)
As Amended June 11, 2013
Majority vote
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|ASSEMBLY: |72-0 |(May 24, 2013) |SENATE: |38-0 |(September 3, |
| | | | | |2013) |
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Original Committee Reference: G.O.
SUMMARY : Adds a new provision to the Alcoholic Beverage Control
Act (ABC Act) that grants beer manufacturers producing more than
60,000 barrels of beer per year the privilege of also
manufacturing "cider or perry" at their licensed premises and to
sell the product to any licensee authorized to sell wine.
The Senate amendments :
1) Make technical changes to the bill.
2) Add coauthors.
EXISTING LAW:
1)Establishes the Department of Alcoholic Beverage Control (ABC)
and grants it exclusive authority to administer the provisions
of the ABC Act in accordance with laws enacted by the
Legislature. This involves licensing individuals and
businesses associated with the manufacture, importation and
sale of alcoholic beverages in this state and the collection
of license fees or occupation taxes for this purpose.
2)Specifies that a licensed beer manufacturer may, at the
licensed premises of production, sell to consumers for
consumption off the premises beer which is produced and
bottled by, or produced and packaged for that manufacturer.
3)Provides that a licensed beer manufacturer may also sell beer
to any person holding a license authorizing the sale of beer
and may sell beer to consumers for consumption on the
manufacturer's licensed premises or on premises owned by the
manufacturer which are contiguous to the licensed premises and
which are operated by and for the manufacturer.
AB 779
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4)Provides that a licensed beer manufacturers may also sell beer
and wine, regardless of source, to consumers for consumption
at a bona fide public eating place on the manufacturer's
licensed premises or at a bona fide public eating place on
premises owned by the manufacturer which are contiguous to the
licensed premises and which are operated by and for the
manufacturer.
5)Separates, under the law known as the "tied-house" law, the
alcoholic beverage industry into three component parts, or
tiers, of manufacturer (including breweries, wineries and
distilleries), wholesaler, and retailer (both on-sale and
off-sale).
AS PASSED BY THE ASSEMBLY , authorized a licensed beer
manufacturer that produces more than 60,000 barrels of beer per
year to manufacture cider or perry, as defined, at the licensed
premises of production and to sell cider or perry to any
licensee authorized to sell wine, as described.
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 : According to the author's office, cider is
the nation's fastest-growing beverage category yet it makes up
only a very small portion (less than 1%) of total U.S. alcoholic
beverage sales and thus has the potential for greater growth.
The author's office references the fact that existing ABC law
establishes a number of licensure categories for alcoholic
beverage manufacturers. For example, breweries must possess a
Type 01 (Beer Manufacturer) license for the production of beer
while wine producers must possess a Type 02 license. In some
cases, a beer manufacturer may have the capacity, technology and
workforce to produce more than one type of alcoholic beverage
(e.g., beer and cider) yet the law limits that licensed
manufacturer to only one type of alcoholic beverage per licensed
manufacturing site.
The author's office states that this bill is intended to
simplify the licensure process for alcoholic beverage
AB 779
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manufacturers who can produce more than one beverage type by
allowing the holder of a Type 01 license to produce not only
beer but also cider and perry. The author's office believes
that the growth of the cider market in California will occur at
bars and restaurants in light of the fact that they have more
open taps for various craft beers and also because they have
shown a willingness to expand their alcoholic beverage
offerings.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0001702