BILL ANALYSIS Ó
Bill No: SB
533
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2013-2014 Regular Session
Staff Analysis
SB 533 Author: Knight
As Amended: April 1, 2013
Hearing Date: April 23, 2013
Consultant: Art Terzakis
SUBJECT
Alcoholic Beverages: beer labels
DESCRIPTION
SB 533 adds clarity to the Alcoholic Beverage Control (ABC)
Act by modifying language pertaining to labeling and
refilling requirements for returnable beer containers known
as "growlers." Specifically, this measure:
1)Deletes certain language in an existing provision of the
Act relative to labeling, content, and use of a container
of beer and recasts that provision, as specified.
2)Adds a new provision to the ABC Act stipulating that a
beer manufacturer that refills any container supplied by
a consumer shall affix a label that complies with state
and federal law on the container prior to its resale to
the consumer.
3)Also, provides that any information concerning any beer
previously packaged in the container, including, but not
limited to, information regarding the manufacturer and
bottler of the beer, shall be removed or completely
obscured in a manner not readily removable by the
consumer prior to the resale of the container to the
consumer.
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Constitution in 1933 repealed the 18th Amendment and ended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
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the authority to establish alcoholic beverage laws and
administrative structures to regulate the sale and
distribution of alcoholic beverages.
The Alcoholic Beverage Control (ABC) Act, administered by
the Department of ABC, regulates the sale and distribution
of alcoholic beverages and the granting of licenses for the
manufacture, distribution, and sale of alcoholic beverages
within the state. The Act also provides for specified
labeling requirements for containers of alcoholic beverages
sold within this state, as provided.
Existing law (B&P Code Section 25200) specifies that all
beer sold in the state must have a label affixed to its
package or container with the true and correct name and
address of the manufacturer of the beer and the true and
correct name of the bottler of the beer if other than the
manufacturer.
Existing law (B&P Code Section 25203) requires every
manufacturer or bottler of beer in this state or elsewhere
whose beer is sold within the state to file with ABC the
brand name or names under which they sell or label their
beer.
Existing law also provides for specified labeling
requirements for containers of alcoholic beverages sold
within this state, as specified. For beer, current law
(B&P Code Section 25204) requires compliance with federal
regulations requiring a statement of alcohol content as a
percentage of alcohol by volume, as specified.
Existing law (B&P Code Section 25205) requires the
container of any beer or alcoholic beverage, other than
sake, that derives 0.5% or more of its alcoholic content by
volume from flavors or other ingredients containing
distilled alcohol and that is sold by a manufacturer or
importer to a wholesaler or retailer within this state to
bear a label or a firmly affixed sticker that includes
specified information regarding its alcohol content and its
status as an alcoholic beverage.
Existing law (B&P Code Section 25206) prohibits any retail
licensee from dispensing any draught beer if the
manufacturer's proper tap sign or draught beer sign is not
displayed.
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Existing law (B&P Code Section 23012) defines "beer
manufacturer" to mean any person engaged in the manufacture
of beer.
Existing law (B&P Code Section 23006) defines "beer" to
mean any alcoholic beverage obtained by the fermentation of
any infusion or decoction of barley, malt, hops, or any
other similar product, or any combination thereof in water,
and includes ale, porter, brown, stout, lager beer, small
beer, and strong beer, but does not include sake, known as
Japanese rice wine. Beer aged in an empty wooden barrel
previously used to contain wine or distilled spirits shall
be defined exclusively as "beer" and shall not be
considered a dilution or mixture of any other alcoholic
beverage.
Existing law defines an "on-sale" license as authorizing
the sale of all types of alcoholic beverages: namely, beer,
wine and distilled spirits, for consumption on the premises
(such as at a restaurant or bar). An "off-sale" license
authorizes the sale of all types of alcoholic beverages for
consumption off the premises in original, sealed
containers.
Federal Law: The Treasury Department's Alcohol and Tobacco
Tax and Trade Bureau (TTB) is responsible for implementing
and enforcing a broad range of statutory and compliance
provisions and ensuring that alcohol products are created,
labeled, and marketed in accordance with the Federal
Alcohol Administration (FAA) Act.
BACKGROUND
Purpose of SB 533: The author's office maintains that
California's current beer labeling and content requirements
for the refilling of off-sale glass containers, known as
"growlers," are not very clear which has led to confusion
amongst breweries and consumers as to which labels or
markings must be covered in order to refill a growler. The
author's office notes that many breweries believe that a
growler may only be refilled with beer from the same
brewery that sold that growler. Additionally, the author's
office points out consumers would like to re-use their
containers from one brewery to the next but labeling
requirements and concerns by licensees pose a barrier. The
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author's office believes this measure would give consumers
the flexibility and choice to reuse their growlers with
proper labeling.
What's a Growler?: Beer aficionados note the term likely
dates back to the late 19th century when fresh beer was
carried from the local pub to one's home by means of a
small galvanized pail. It is claimed the sound that the
CO2 made when it escaped from the lid as the beer sloshed
around sounded like a growl.
A growler is typically a glass or ceramic jug with a
capacity of a gallon of beer with either a screw-on cap
or a hinged porcelain gasket cap, which can provide
freshness for a week or more. They are commonly sold at
breweries and brewpubs as a means to sell take-out craft
beer.
The ABC Act does not define the term "growler" but since a
growler is a container used to carry beer it is subject to
ABC laws that regulate beer packaging and labeling.
Arguments in Support: Proponents claim this measure is
necessary to clarify labeling requirements for growler
refills in order to alleviate any confusion for the
Department of ABC, the consumer and the brewery.
Proponents believe SB 533 will go a long way in eliminating
any such confusion amongst consumers and producers in the
brewery industry.
RELATED LEGISLATION
AB 647 (Chesbro) 2013-14 Session. Would require a beer
manufacturer that refills any container supplied by a
consumer to affix a label, as specified, on the container
prior to its resale to the consumer. Also, would require
information concerning any beer previously packaged in the
container, including, but not limited to, information
regarding the manufacturer and bottler of the beer, to be
removed or completely obscured in a manner not readily
removable by the consumer prior to resale. (Pending in
Assembly Appropriations)
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AB 346 (Beall), Chapter 624, Statutes of 2008. Provided
that any container of beer or alcoholic beverage, other
than sake, that is approved for labeling as a malt beverage
under the Federal Alcohol Administration Act (FAAA), that
derives 0.5% or more of its alcoholic content by volume
from flavors or other ingredients containing distilled
alcohol and that is sold within this state on or after July
1, 2009, shall bear a distinctive, conspicuous, and
prominently displayed label, or firmly affixed sticker, as
defined.
SUPPORT: As of April 19, 2013:
The Honorable James C. Ledford, Jr., Mayor, City of
Palmdale
OPPOSE: None on file as of April 19, 2013.
FISCAL COMMITTEE: Senate Appropriations Committee