BILL ANALYSIS Ó
SB 533
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Date of Hearing: August 7, 2013
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Hall III, Isadore, Chair
SB 533 (Knight) - As Amended: August 5, 2013
SENATE VOTE : 34-0
SUBJECT : Alcoholic beverages: beer labels
SUMMARY : 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 bill :
1) Deletes specific 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.
EXISTING LAW:
1) Provides ABC has the 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 or occupation taxes for this purpose.
2) 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.
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3) 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.
4) Provides for specified labeling requirements for containers
of alcoholic beverages sold within this state, as specified.
For beer, requires compliance with federal regulations requiring
a statement of alcohol content as a percentage of alcohol by
volume, as specified.
5) 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.
6) Defines "beer manufacturer" to mean any person engaged in
the manufacture of beer, and "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.
FISCAL EFFECT : Unknown.
COMMENTS :
Purpose of the bill : 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
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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
measure would give consumers the flexibility and choice to reuse
their growlers with proper labeling.
Background : Business and Professions Code Section 25200 of the
ABC Act and Rule 130 of the California Code of Regulations
address the issue of beer labeling. Form ABC-412 (Application
for Label Approval) has instructions that further explain ABC's
labeling requirements. Growlers, like any other type of beer
container, must have a label with certain mandatory information.
This assumes, of course, that the growler is sold "to go,"
either to the consumer/purchaser or for resale to wholesalers or
retailers.
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.
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 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.
Committee amendment : In order to be consistent with AB 647
(Chesbro), the author might want to consider amending the bill
"to prevent a beer manufacturer from refilling a container
supplied by a consumer with a capacity of five liquid gallons or
more." In addition, the bill should be amended to avoid a
chaptering problem with AB 647 (Chesbro) which deals with the
same subject matter and is pending passage on the Senate floor.
Related legislation : AB 647 (Chesbro) 2013-14 Session. Adds
clarity to existing provisions of the ABC Act relative to
labeling requirements for the refilling of off-sale
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consumer-sized beer containers, known as "growlers," by beer
manufacturers; and the serving of beer, as specified, by a beer
manufacturer or brewpub-restaurant licensee. (Pending on the
Senate Floor)
Prior legislation : 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.
REGISTERED SUPPORT / OPPOSITION :
Support
California Craft Brewers Association
City of Palmdale, Mayor James C. Ledford, Jr.
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531