BILL ANALYSIS Ó
AB 933
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CONCURRENCE IN SENATE AMENDMENTS
AB 933 (Skinner and Hall)
As Amended September 3, 2013
Majority vote
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|ASSEMBLY: |76-0 |(May 30, 2013) |SENATE: |39-0 |(September 9, |
| | | | | |2013) |
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Original Committee Reference: G.O.
SUMMARY : Grants licensed distilled spirits manufacturers and
licensed brandy manufacturers the privilege to conduct consumer
tastings on their licensed premises and to charge for those
tastings, as defined.
The Senate amendments :
1)Include "boiler plate" findings and declarations relative to
the necessity of requiring a separation between the
three-tiers of the alcoholic beverage industry in order to
prevent suppliers from dominating local markets through
vertical integration and to prevent excessive sales of
alcoholic beverages produced by overly aggressive marketing
techniques.
2)Make it explicit that single tastings of distilled spirits or
brandy shall not be given in the form of a cocktail or a mixed
drink.
3)Allow distilled spirits manufacturers and brandy manufacturers
to charge individuals for up to six tastings instead of four
tastings.
4)Provide the licensee shall not be relieved of any civil or
criminal liability arising out of a violation of Business and
Professions Code Section 25602.
5)Delete reference to "single" tastings and instead uses the
term "tastings."
EXISTING LAW :
1)Establishes the Department of Alcohol and Beverage Control
AB 933
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(ABC) and grants it exclusive authority to administer the
provisions of the Alcoholic Beverage Control Act (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)Permits a licensed distilled spirits manufacturer to conduct
tastings of distilled spirits produced or bottled by, or
produced or bottled for, the licensee, on or off the
licensee's premises. Tastings conducted by the licensee off
the licensee's premises must be for an event sponsored by a
nonprofit organization, as defined, and only if persons
attending the event are affiliated with the sponsor. Existing
law also makes it explicit that no distilled spirits shall be
sold or solicited for sale in that portion of the premises
where the distilled tasting is being conducted.
3)Authorizes ABC to issue to the holder of an "off-sale" retail
license an "instructional tasting license" for the purpose of
furnishing tastings of alcoholic beverages to consumers,
subject to certain limitations.
4)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: a) no more than a quarter ounce of distilled spirits is
offered in one tasting; b) no more than one ounce of wine is
offered in one tasting; and, c) 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.
5)Authorizes beer manufacturers and wholesalers to offer beer
samples (not to exceed eight ounces per person, per day) to
individuals of legal drinking age at on-sale retail licensed
premises under specified conditions.
6)Authorizes licensed winegrowers to conduct wine tastings
featuring their products either on or off the winegrower's
premises, as provided for in rules and regulations adopted by
ABC.
AB 933
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7)Permits, until January 1, 2014, a manufacturer, winegrower,
rectifier, or distiller, distilled spirits manufacturer's
agent or any authorized agent of that person to provide, free
of charge, entertainment, food, and distilled spirits, wine,
or nonalcoholic beverages to consumers over 21 years of age at
an invitation-only event in connection with the sale or
distribution of wine or distilled spirits, as specified.
AS PASSED BY THE ASSEMBLY , this bill allowed a licensed
distilled spirits or brandy manufacturer to charge consumers for
tastings on its licensed premises.
FISACL 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.
According to the author, tastings are a traditional means of
allowing responsible adult consumers to sample and learn about
the wide variety of alcoholic beverage products available in the
marketplace. There are roughly 32 small business distilleries
in the state; some common brands produced are Hangar One Vodka
and St. James Spirits. These distilleries manufacture a variety
of products including but not limited to gin, vodka, rum and
bourbon. California distillers make award-winning products
using raw ingredients which are primarily purchased, sourced or
grown by California farmers or suppliers.
The author points out, that currently, distilleries may provide
their customers complementary tastings of their products, but
may not charge for tastings. In order to educate consumers
about their products, distilleries must hire staff. The ability
to charge for tastings will allow distilleries to provide better
customer service to market their product while remaining
financially sustainable. The author also points out, that the
ability to charge for tastings is also aligned with what the
wine and beer industry are allowed to do under the ABC Act.
According to the author's office, this measure is intended to
give adult consumers who enjoy distilled spirits the opportunity
to sample new products, in modest quantities, and in a
responsible environment (at the distillery). This measure is
carefully crafted to give distilled spirits and brandy
manufacturers a marketing tool to educate current and future
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consumers while taking into consideration California's
three-tier system.
In support: According to the bill's sponsor, California
Artisanal Distillers Guild, granting artisanal distillers the
ability to charge for tastings will induce growth and long-term
sustainability for the overall industry.
In opposition: The California Council on Alcohol Problems
(CCAP), "Beyond the fiscal context of our general opposition to
AB 933 -- and bills like it, CCAP members are concerned about
expanding the tastings exemption to Tied-House and licensure
limitations, and most especially allowing such tastings to be
sold like an on-sale premise. This unprecedented authorization
for the sell and consumption of distilled spirits outside of a
properly licensed, on-sale establishment is deeply troubling,
even if this measure limits such consumption to a manufacturer's
business location."
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0002332