BILL ANALYSIS Ó AB 394 Page 1 Date of Hearing: April 15, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 394 (Mark Stone) - As Amended March 19, 2015 ----------------------------------------------------------------- |Policy |Governmental Organization |Vote:|21 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill, on or after January 1, 2019, requires any wine bottled and labeled with an American Viticultural Area (AVA), established pursuant to federal law, that is located entirely within Monterey County to include the designation "Monterey County" on the label, unless the federal AVA is "Monterey." FISCAL EFFECT: Minor and absorbable enforcement costs to the Department of Alcoholic Beverage Control. AB 394 Page 2 COMMENTS: 1)Purpose. According to the author, this conjunctive labeling bill will ensure consumers recognize every bottle of wine that is produced from Monterey County grapes. The author believes the additional labeling will build the Monterey County wine brand and strengthen the county's position as a recognized, world-class winegrowing region. Similar conjunctive labeling rules exist for Sonoma and Napa Counties as well as Lodi and Paso Robles. 2)Monterey Wine. The Family Winegrowers of California (FWC) indicate Monterey County is one of the fastest growing premium vineyard and winery regions in the state. According to the Monterey County Vintners and Growers Association, there are currently eight AVAs contained within the Monterey AVA: Arroyo Seco, Carmel Valley, Chalone, Hames Valley, San Antonio Valley, San Bernabe, San Lucas, and Santa Lucia Highlands. FWC asserts it is important for these smaller, separate AVAs to benefit from and contribute to the affinity with Monterey County labeling, and that AB 394 will accommodate the desired specificity of sub-appellation labeling while linking wine to the broader Monterey AVA. Analysis Prepared by:Joel Tashjian / APPR. / (916) 319-2081 AB 394 Page 3