BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1424
                                                                  Page  1

          Date of Hearing:   May 8, 2013

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                              Hall III, Isadore, Chair
           AB 1424 (Governmental Organization) - As Introduced:  March 21,  
                                        2013
           
          SUBJECT  :   Alcoholic beverages.

           SUMMARY  :    Permits winegrowers and beer manufacturers to  
          describe the "composition" of their products, in addition to  
          other characteristics already permitted, when engaging in  
          tastings or instructional events for their licensees or  
          employees.

           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 for this purpose. 

          2)  Permits a winegrower, beer manufacturer, or a beer and wine  
          wholesaler to instruct licensees and their employees on the  
          subject of wine or beer, including but not limited to, the  
          history, nature, values, and characteristics of those beverages,  
          as provided.

          3)  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: (1) no more than  ounce of distilled spirits is offered in  
          one tasting; (2) no more than one ounce of wine is offered in  
          one tasting; and, (3) 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.   


          4)  Authorizes beer manufacturers and wholesalers to offer beer  
          samples (not to exceed 8 ounces per person, per day) to  
          individuals of legal drinking age at on-sale retail licensed  








                                                                  AB 1424
                                                                  Page  2

          premises under specified conditions.  
           
          5)  Permits a licensed winegrower, manufacturer, importer, or  
          wholesaler to provide samples of the alcoholic beverages which  
          are authorized to be sold by the licensee in accordance with  
          rules prescribed by the ABC.  A retail licensee, however, is not  
          authorized to provide any free samples of alcoholic beverages.   
          Moreover, ABC regulations provide that samples of alcoholic  
          beverages may only be given away to licensees or employees of  
          licensees who are in a position to purchase the product or who  
          are in need of additional information about the product, as  
          specified.

           FISCAL EFFECT  :   This bill has been keyed non-fiscal by  
          Legislative Counsel.

           COMMENTS  :   

          According to the author's office, craft brewers are producing  
          award-winning beers that are recognized and purchased in  
          national and international markets.  In addition, they have  
          installed tasting rooms to accommodate consumers and to  
          facilitate tourism and economic growth in their local  
          communities.  The author's office notes that craft breweries  
          have also taken advantage of expanded opportunities for on-site  
          beer tastings at restaurants and bars.  During such tasting  
          events, consumers usually inquire as to the actual "composition"  
          of the beers - they are also curious about specific ingredients  
          due to various gastronomic interests or food allergies.  The  
          author's office claims that existing law does not explicitly  
          permit a response to questions relating to "composition" of the  
          beer.  AB 1425 is simply intended to affirmatively provide that  
          authority.

          This bill will be consistent with the state's economic recovery  
          goals and promotion of California businesses and their  
          increasingly popular products to local, national and  
          international markets.

           Prior legislation  :  AB 605 (Portantino) Chapter 230, Statutes of  
          2010.  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.









                                                                  AB 1424
                                                                  Page  3

          AB 2293 (De Leon) Chapter 638, Statutes of 2008.  Permits  
          distilled spirits manufacturers and winegrowers to provide their  
          product offerings directly to consumers (free of charge) during  
          invitation-only events on premises for which a caterer's permit  
          authorization has been issued.

          SB 1548 (Murray) Chapter 670, Statutes of 2006.  Authorized beer  
          manufacturers and wholesalers to offer beer samples (not to  
          exceed 8 ounces per person, per day) to individuals of legal  
          drinking age at on-sale retail licensed premises under specified  
          conditions.  

          AB 2285 (V. Brown) Chapter 248, Statutes of 1998.  Allowed  
          on-sale retail licensees to offer limited tastings of wine or  
          distilled spirits at the licensed establishment.

          SB 993 (Burton) Chapter 544, Statutes of 1997.  Among other  
          things, authorized a licensed distilled spirits manufacturer to  
          conduct tastings of distilled spirits on the licensed premises  
          under specified conditions.  
           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file
           

          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531