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