BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 1425|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: AB 1425
Author: Assembly Governmental Organization Committee
Amended: 9/6/13 in Senate
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 11-0, 6/11/13
AYES: Wright, Nielsen, Berryhill, Calderon, Cannella, Correa,
De León, Galgiani, Hernandez, Lieu, Padilla
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 70-0, 5/16/13 (Consent) - See last page for
vote
SUBJECT : Alcoholic beverages
SOURCE : Author
DIGEST : This bill makes non-controversial and clarifying
changes to the Alcoholic Beverage Control Act (ABC Act).
Senate Floor Amendments of 9/6/13 delete an existing tied-house
exception sunset; consolidate specified beer and wine
provisions; and allow beer or wine made for personal or family
use to be donated to a nonprofit organization and used at a
fundraising event, as specified.
ANALYSIS :
Existing law:
CONTINUED
AB 1425
Page
2
1. Establishes the Department of Alcohol 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. Requires the Department of ABC to submit an annual report to
the Legislature by March 1 on the Department's activities for
the previous fiscal year.
3. Prohibits a licensed wine blender (Type 22) from holding a
retail license and prohibits a retail licensee from holding a
wine blender license; and specifies that this prohibition
does not apply to licenses issued on or before February 2,
1968.
4. Prohibits a licensed wine blender from conducting wine
tastings on or off its licensed premises; and specifies that
this prohibition does not apply to wine blender licenses
issued on or before February 2, 1968.
5. Separates the alcoholic beverage industry into three
component parts, or tiers, of manufacturer (including
breweries, wineries and distilleries), wholesaler, and
retailer (both on-sale and off-sale). This is known as the
"tied-house' law.
6. Establishes, until December 31, 2014, a tied-house exemption
that allows an alcoholic beverage licensee to make monetary
and alcoholic beverage contributions to a symphony
association (the San Francisco Symphony) that is a nonprofit
charitable corporation or association, as defined, and under
specified condition.
7. Allows persons over 21 years of age to produce specified
amounts of beer or wine for personal or family use without a
permit or license issued by ABC.
8. Permits home brewed wine or beer to be removed from the
premises where manufactured for use in competition at
organized affairs, exhibitions, or competitions including
CONTINUED
AB 1425
Page
3
homemakers' contests, tastings, or judgings; and stipulates
that wine manufactured by a home winemaker shall not be sold
or offered for sale.
This bill makes non-controversial and clarifying changes to the
ABC Act. Specifically, this bill:
1. Amends Business and Professions Code (BPC) Section 23055 to
require the Department of ABC to post its annual report to
the Legislature on its Internet Web site by March 1 of each
year instead of submitting it to the Legislature. This
proposed change makes the report easily accessible to
interested parties and is consistent with SB 71 (Leno,
Chapter 728, Statutes of 2012), which required state agencies
to place specified reports on their Internet Web sites
instead of submitting them to the Legislature.
2. Amends BPC Section 23356.2 by consolidating separate beer
and wine provisions into one designated code section, and
allowing beer or wine made for personal or family use to be
donated to a nonprofit organization and used at a fundraising
event conducted solely by and solely for the benefit of the
nonprofit organization and only for consumption on the
premises of the fundraising event, provided that a license is
issued by ABC.
3. Amends BPC Sections 23356.8 and 23356.9 to remove the
grandfather clauses that allow wine blender licensees issued
prior to February 2, 1968 to hold retail licenses. At the
time these sections were enacted in 1968, two wine blenders
held retail licenses. None of the existing Type 22 wine
blender licenses were issued or transferred prior to 1968,
which makes these grandfather clauses obsolete.
4. Amends BPC Section 25503.1 by removing the December 31, 2014
sunset date.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
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,
CONTINUED
AB 1425
Page
4
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:d 9/9/13 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
**** END ****
CONTINUED