BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1424| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- CONSENT Bill No: AB 1424 Author: Assembly Governmental Organization Committee Amended: As introduced Vote: 21 SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 11-0, 6/11/13 AYES: Wright, Nielsen, Berryhill, Calderon, Cannella, Correa, De León, Galgiani, Hernandez, Lieu, Padilla ASSEMBLY FLOOR : 70-0, 5/16/13 (Consent) - See last page for vote SUBJECT : Alcoholic beverages: instruction: tastings SOURCE : Author DIGEST : This bill 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. ANALYSIS : Existing law: 1.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 CONTINUED AB 1424 Page 2 beverages, as provided. 2.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 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. 3.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. 4.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 Department of Alcoholic Beverage Control (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. Existing law, known as the "tied-house" law, separates the alcoholic beverage industry into three component parts of manufacturer, wholesaler, and retailer. The original policy rationale for this body of law was to prohibit the vertical integration of the alcohol industry and to protect the public from predatory marketing practices. Generally, other than exemptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the "three-tier" system. This bill permits winegrowers and beer manufacturers to describe the "composition" of their products, in addition to other characteristics already permitted, when engaging in tastings or CONTINUED AB 1424 Page 3 instructional events for their licensees or employees. Comments According to the author's office, craft brewers are producing award-winning beers that are recognized and purchased in national and international markets. These brewers have also installed tasting rooms to accommodate consumers and to facilitate tourism and economic growth in their respective local communities. In addition, craft breweries have 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. This bill is simply intended to affirmatively provide that authority. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No ASSEMBLY FLOOR : 70-0, 5/16/13 AYES: Achadjian, Alejo, Ammiano, Atkins, Bigelow, Bloom, Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dahle, Daly, Dickinson, Donnelly, Fong, Fox, Frazier, Garcia, Gatto, Gomez, Gordon, Gorell, Gray, Hagman, Hall, Harkey, Roger Hernández, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein, Mansoor, Medina, Mitchell, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Ting, Torres, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Allen, Buchanan, Eggman, Beth Gaines, Grove, Holden, Melendez, Morrell, Stone, Vacancy MW:nl 6/12/13 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END **** CONTINUED AB 1424 Page 4 CONTINUED