BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1424|
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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
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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
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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
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