BILL ANALYSIS                                                                                                                                                                                                    Ó






                                                       Bill No:  AB  
          1989
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                           Senator Lou Correa, Chair
                           2013-2014 Regular Session
                                 Staff Analysis

          
          AB 1989  Author:  Chesbro
          As Amended:  May 1, 2014
          Hearing Date:  June 24, 2014
          Consultant:  Art Terzakis

                                         
                                    SUBJECT  
            Alcoholic Beverages: students in winemaking and brewery  
                                science programs

                                   DESCRIPTION
           
          AB 1989 creates a narrow exception to current Alcoholic  
          Beverage Control (ABC) Act provisions relating to  
          consumption or possession of alcoholic beverages by  
          underage persons by allowing students who are at least 18  
          years of age and enrolled in degree granting programs in  
          enology or brewing at accredited public postsecondary  
          educational institutions  to taste  ,  but not consume  , an  
          alcoholic beverage for educational purposes as part of the  
          instruction in a course required for a degree.   
          Specifically, this measure:

          1)Allows a "qualified student" to taste an alcoholic  
            beverage, and exempts the student and the "qualified  
            academic institution" in which the student is enrolled  
            from criminal prosecution under provisions of the ABC Act  
            if  all  of the following criteria are met:

             a)   The qualified student tastes the alcoholic beverage  
               while enrolled in a qualified academic institution;

             b)   The qualified academic institution has established  
               an Associate's degree or Bachelor's degree program in  
               enology or brewing that is designed to train industry  
               professionals in the production of wine or beer;





          AB 1989 (Chesbro) continued                              
          Page 2
          


             c)   The qualified student "tastes and spits" the  
               alcoholic beverage for educational purposes as part of  
               the instruction in a course required for a degree.

             d)   The alcoholic beverage remains in the control of an  
               authorized instructor of the academic institution who  
               is at least 21 years of age.

          2)Defines "qualified academic institution" as a public  
            college or university accredited by a commission  
            recognized by the U.S.

          3)Defines "qualified student" as a student enrolled in a  
            qualified academic institution who is at least 18 years  
            of age.

          4)Defines "taste" as drawing an alcoholic beverage into the  
            mouth, but does not include swallowing or otherwise  
            consuming the alcoholic beverage. 

          5)Makes it explicit that an ABC license or permit is not  
            required to be held by the academic institution provided  
            an extra fee or charge is not imposed for the alcoholic  
            beverages tasted.

          6)Also, makes corresponding changes to existing provisions  
            of the ABC Act as well as code maintenance changes. 

                                   EXISTING LAW

           The enactment of the 21st Amendment to the U.S.  
          Constitution in 1933 repealed the 18th Amendment and ended  
          the era of Prohibition.  Accordingly, states were granted  
          the authority to establish alcoholic beverage laws and  
          administrative structures to regulate the sale and  
          distribution of alcoholic beverages.  

          Existing law establishes the Department of 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.

          The ABC Act provides that any person under 21 years of age  




          AB 1989 (Chesbro) continued                              
          Page 3
          


          who purchases any alcoholic beverage, who consumes any  
          alcoholic beverage in any on-sale premises, or who  
          possesses any alcoholic beverage on any street or highway  
          or in any public place or any place open to the public is  
          guilty of a misdemeanor. In addition, the ABC Act provides  
          that every person who sells, furnishes, gives, or causes to  
          be sold, furnished, or given away any alcoholic beverage to  
          any person under 21 years of age is guilty of a  
          misdemeanor.

                                    BACKGROUND
           
           Purpose of AB 1989:   The author's office points out that  
          California is a leader in wine production on a global scale  
          - accounting for more than 90% of all U.S. wine produced.   
          California is also the 4th largest producer in the world  
          after France, Italy and Spain.  When it comes to brewing,  
          California is equally fortunate to have a robust array of  
          beer makers - both large and small.  In both instances,  
          many of these products are made with the help of California  
          college and university graduates who, in many cases,  
          diligently complete the bulk of their career training in  
          beer or wine production prior to reaching the age of 21.  

          The author's office points out that due to current state  
          law which expressly forbids the furnishing of alcohol to a  
          person under 21 years of age, postsecondary students  
          enrolled in beer and winemaking programs within  
          California's public institutions of higher education are  
          precluded from fully participating in the production and  
          sensory evaluation portions of their academic programs  
          until near the end of their academic studies - or, in some  
          cases, not at all.  This delay significantly alters the  
          timeline of their coursework and prevents them from fully  
          participating in internship opportunities that require an  
          understanding of beverage production that only tasting  
          provides.

          The author's office states that this measure would enable  
          students enrolled in enology or brewmaster programs at UC,  
          CSU and community colleges to receive an exemption from  
          current state age restrictions in order to fully  
          participate in bona fide classes and programs where tasting  
          of wine or beer is a necessary aspect of the class or  
          program. 





          AB 1989 (Chesbro) continued                              
          Page 4
          


          The author's office emphasizes that California is not the  
          first state to consider such an exemption from legal-age  
          statutes.  In fact, twelve states (Washington, Colorado,  
          Florida, Illinois, Michigan, Missouri, New Jersey, New  
          York, North Carolina, South Carolina, Rhode Island and  
          Vermont) have passed similar legislation addressing the  
          need for tasting in educational programs. The author's  
          office believes AB 1989 is a modest measure that ensures  
          California's students that are enrolled in enology or beer  
          brewing degree programs have the same educational  
          opportunities offered by neighboring states so that they  
          can compete in the thriving wine and beer industries. 
           
           Arguments in Support:   Proponents recognize and respect the  
          delicate nature of this subject matter, and the need and  
          rationale for existing state law.  Clearly, the intent of  
          this measure is to target students enrolled in  
          degree-granting programs at accredited California public  
          institutions only.  It is not intended to include students  
          from other majors taking electives in these enology/brewery  
          programs.  Proponents note that this measure contains  
          significant safeguards to prevent actual consumption of  
          wine or beer.  "It merely allows a qualified student, in a  
          qualified course, with a qualified teacher, to taste wine  
          or beer - the sensory aspects of the wine or beer are the  
          focus of the bill." 

           SUPPORT:   As of June 20, 2014:

          California Association of Winegrape Growers
          California Craft Brewers Association
          California State University
          Community College League of California
          Family Winemakers of California
          Napa Valley College
          University of California

           OPPOSE:   None on file as of June 20, 2014.

           FISCAL COMMITTEE:   No.

                                   **********








          AB 1989 (Chesbro) continued                              
          Page 5