BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  SB 533
          Author:   Knight (R)
          Amended:  4/1/13
          Vote:     21

           
           SENATE GOVERNMENTAL ORGANIZATION COMMITTEE  :  9-0, 4/23/13
          AYES:  Wright, Nielsen, Berryhill, Calderon, Cannella, Correa,  
            De León, Hernandez, Lieu
          NO VOTE RECORDED:  Galgiani, Padilla

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Alcoholic beverages:  beer labels

           SOURCE  :     Author


           DIGEST  :    This bill 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.  

           ANALYSIS  :    Under federal law, the Treasury Department's  
          Alcohol and Tobacco Tax and Trade Bureau 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 Act.  

          Existing law:

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           1. 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.

           2. 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.  

           3. Provides for specified labeling requirements for containers  
             of alcoholic beverages sold within this state, as specified.   
             For beer, existing law requires compliance with federal  
             regulations requiring a statement of alcohol content as a  
             percentage of alcohol by volume, as specified.

           4. 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. 

           5. Prohibits any retail licensee from dispensing any draught  
             beer if the manufacturer's proper tap sign or draught beer  
             sign is not displayed.

           6. Defines the following terms:

              A.    "Beer manufacturer" to mean any person engaged in the  
                manufacture of beer.

              B.    "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  

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                other alcoholic beverage.

              C.    "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.  

          This bill adds clarity to the ABC Act by modifying language  
          pertaining to labeling and refilling requirements for returnable  
          beer containers known as "growlers."  Specifically, this bill:

           1. Deletes certain language in an existing provision of the ABC  
             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. 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.

           Background
           
          California's current beer labeling and content requirements for  
          the refilling of off-sale glass containers, known as "growlers,"  
          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 author's office believes this  
          bill will give consumers the flexibility and choice to reuse  
          their growlers with proper labeling.  

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          The term "growler" 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  
          half 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  5/7/13)

          California Craft Brewers Association
          City of Palmdale, Mayor James C. Ledford, Jr.

           ARGUMENTS IN SUPPORT  :    This bill's proponent claims this bill  
          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.  The proponent believes  
          this bill will go a long way in eliminating any such confusion  
          amongst consumers and producers in the brewery industry.


          MW:k  5/7/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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