BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1425
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1425 (Governmental Organization Committee)
          As Amended  September 6, 2013
          Majority vote
           
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          |ASSEMBLY:  |70-0 |(May 16, 2013)  |SENATE: |38-0 |(September 12, |
          |           |     |                |        |     |2013)          |
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           Original Committee Reference:    G.O.  

           SUMMARY  :  Requires the Department of Alcohol Beverage Control  
          (ABC) to post its annual report of activities on its Internet  
          Web site and deletes outdated references with regards to  
          wine-blenders.  The bill allows beer or wine made for personal  
          or family use to be donated to a non-profit organization and  
          used at a fundraising event conducted by the organization,  
          provided that a license or permit is issued by ABC, as  
          specified.  In addition, the bill deletes an existing tied-house  
          exception "sunset" pertaining to the San Francisco Symphony. 

           The Senate amendments  : 

          1)Delete an existing tied-house exception "sunset" pertaining to  
            the San Francisco Symphony which allows specified alcohol  
            licenses to make monetary or alcoholic beverage contributions  
            to the association.

          2)Authorize 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, as specified.  Donated beer and wine  
            may be sold by the nonprofit organization only for consumption  
            on the premises of the fundraising event, under a license  
            issued by ABC to the nonprofit organization, as defined. 

          3)Require beer or wine donated to a nonprofit organization to be  
            labeled with designated information, and would otherwise  
            exempt it from complying with existing labeling requirements.

           AS PASSED BY THE ASSEMBLY  , this bill required ABC to post its  
          annual report to the Legislature on its Web site.  In addition,  
          the bill made various code maintenance changes to existing  
          provisions of the Alcoholic Beverage Control Act. 








                                                                  AB 1425
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           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.  


           COMMENTS  :   

           Purpose of the bill  :  This is the annual Assembly Governmental  
          Organization Committee bill which makes technical, clarifying,  
          conforming, and non-controversial changes to the Alcoholic  
          Beverage Control Act (ABC Act).  

          The bill removes a sunset provision contained in a current  
          tied-house exemption which was granted to the San Francisco  
          Symphony in 2009.  SB 131 (Wiggins), Chapter 638, Statutes of  
          2009, allowed the San Francisco Symphony (SFS) to accept  
          monetary contributions and alcoholic beverages from an alcohol  
          licensee.  This tied-house exception was necessary because the  
          SFS also holds an on-sale retail license for a very small  
          portion of its facility.  The possession of this retail license  
          prevented an alcohol licensee from providing charitable  
          contributions (both monetary and product) to the non-profit  
          symphony.

          In addition, ABC has determined that current law does not allow  
          for home brewed wine or beer to be used at a fundraiser where a  
          ticket for the event must be purchased.  This bill will allow  
          wine and beer made pursuant to current law to be donated to a  
          nonprofit organization for sale at a fundraising event conducted  
          solely by and solely for the benefit of the nonprofit  
          organization.  The beer and wine may be sold by the nonprofit  
          organization only for consumption "on the premises" of the  
          fundraising event, under a license issued by ABC.  The bill also  
          consolidates the beer and wine provisions noted above in the ABC  
          Act into one designated code section.

           Prior legislation  :  AB 749 (Hall), Chapter 221, Statutes of  
          2011.  Changed reporting requirements for the ABC relating to  
          its annual report to the Legislature to previous "fiscal year,"  
          instead of "calendar year."

          SB 1480 (Governmental Organization Committee), Chapter 296,  
          Statutes of 2010.  Among other things, deleted the requirement  
          that the Director of ABC include recommendations for legislation  
          in the annual ABC report to the Legislature.








                                                                  AB 1425
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          SB 131 (Wiggins), Chapter 638, Statutes of 2009.  Created an  
          exception to the tied-house laws in the ABC Act that authorized  
          the San Francisco Symphony, which holds an on-sales liquor  
          license, to accept monetary and alcoholic beverage product  
          contributions (for free) from licensed alcoholic beverage  
          manufacturers. 

          AB 607 (Wiggins), Chapter 28, Statutes of 2008.  Allowed an  
          individual to make up to 100 gallons of wine per year for  
          personal or family consumption without a license or permit if he  
          or she is the only adult in the household or 200 gallons per  
          year if there is at least one other adult in the household.  
          Furthermore, the bill allowed individuals to offer their wine at  
          fairs, exhibitions or competitions. 

          AB 2413 (Governmental Organization Committee), Chapter 579,  
          Statutes of 2002.  Required ABC to include within its annual  
          report to the Legislature, the number and type of enforcement  
          activities conducted by local law enforcement agencies in  
          conjunction with the ABC.
           

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


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