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