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