BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 2182
Author: Beth Gaines (R)
Amended: 3/28/14 in Assembly
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 7-0, 6/10/14
AYES: Correa, De León, Galgiani, Hernandez, Padilla, Torres,
Vidak
NO VOTE RECORDED: Berryhill, Cannella, Lieu, Vacancy
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 78-0, 5/15/14 (Consent) - See last page for
vote
SUBJECT : Alcoholic beverage control: winegrowers: wine
sales event permits
SOURCE : Author
DIGEST : This bill modifies a provision of the Alcoholic
Beverage Control Act (ABC Act) which currently allows a licensed
winegrower to apply for a wine sales event permit allowing wine
to be sold at fairs and cultural events for a maximum of five
consecutive days to, instead, make the permit valid for the
entire duration of the event.
ANALYSIS :
Existing law:
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1.Establishes the Department of Alcoholic 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.Authorizes the ABC to issue a wine sales event permit (Type 81
license) to allow a licensed winegrower to sell bottled wine
(produced by the winegrower) at festivals, county fairs,
civic/cultural celebrations or similar events held by
organizations operated for nonprofit purposes, as defined.
Provides that each permit shall be valid for a maximum of five
consecutive days at that particular event and limits
sponsorship of such events to certain nonprofit organizations
defined in the Revenue and Taxation Code. Provides that the
sale of the wine shall not be the primary purpose of the
event, and the sale shall be for consumption off the premises
where sold. Prohibits a wine sales event permit from being
used more than two times a month at a particular location and
a licensee from selling more than 5,000 gallons of wine
annually, as specified.
3.Separates the alcoholic beverage industry into three component
parts of manufacturer, wholesaler, and retailer. This is
known as the "tied-house" law. 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 modifies a provision of the ABC Act which currently
allows a licensed winegrower to apply for a wine sales event
permit allowing wine to be sold at fairs and cultural events for
a maximum of five consecutive days to, instead, make the permit
valid for the entire duration of the event.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
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SUPPORT : (Verified 6/23/14)
Family Winemakers of California
Placer County Vintners Association
Strad Meadery
OPPOSITION : (Verified 6/23/14)
Alcohol Justice
ARGUMENTS IN SUPPORT : The author's office points out wine
growers have encountered struggles attending certain events
(e.g., the State Fair, county fairs, etc.) that exceed the
limited scope of the existing Type 81 ABC license. This bill is
intended to recognize that qualifying fairs and cultural events
often span a greater duration than the five-day wine sales event
permit currently allows and that the proposed modification to
existing law simply matches the length of the permit to the
length of the event. Proponents indicate such events are a
viable channel for wine sales and they strongly believe that
this bill is crucial for small wine producers to reach the full
potential of their business capacity.
ARGUMENTS IN OPPOSITION : Alcohol Justice argues that this
bill "expands the availability of alcoholic products while
eroding the triple-tier system, which provides public health and
safety protections. Evidence shows that increased availability
of alcoholic beverages is correlated with an increase in alcohol
related harm."
ASSEMBLY FLOOR : 78-0, 5/15/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández,
Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian,
Nestande, Olsen, Pan, Patterson, Perea, John A. Pérez, V.
Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,
Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron,
Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Mansoor, Vacancy
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MW:ke 6/24/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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