BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 776


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          Date of Hearing:  May 20, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          776 (Cooper) - As Amended April 15, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill allows a licensed beer manufacturer to apply to the  
          Department of Alcoholic Beverage Control (ABC) for a brewery  
          event permit, which would permit the sale of beer produced by  
          that beer manufacturer for consumption on property contiguous  
          and adjacent to the licensed premises of the manufacturer.  The  
          bill establishes a $110 annual fee for the brewery event permit  
          in 2016, and indexes the annual fee to inflation thereafter.   
          The bill limits permit holders to 4 events per year, and further  
          authorizes ABC to charge a fee per event of up to $25.


          FISCAL EFFECT:








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          Minor and absorbable costs to ABC, supported at least in part by  
          fee revenue.


          COMMENTS:


          1)Purpose.  According to the author, current law does not permit  
            breweries that lease their facilities from holding events in  
            the adjacent area to the brewery premises.  This bill allows  
            those breweries to apply for event permits, which would enable  
            them to hold special anniversary celebrations, new release  
            parties, or other special events where the expected crowd  
            could not be accommodated in the public areas of the brewery.   
            The author notes current law permits wineries to apply for a  
            similar temporary permit for special events, and this bill  
            simply extends that privilege to breweries.


          2)Craft Beer Bonanza.  The author asserts California's craft  
            brewing industry is growing rapidly, supporting 44,000 jobs  
            and contributing $5.5 billion of economic activity in 2013.   
            Supporters, led by the California Craft Brewers Association,  
            contend California's craft brewers have won national and  
            international acclaim, and beer enthusiasts are eager to visit  
            their favorite California craft breweries for special events  
            and product release days.  For example, a recent survey  
            conducted in Sonoma County around the Russian River Brewing  
            Company's release of "Pliny the Younger" in 2013 found the  
            event generated $2.4 million in economic activity in the Santa  
            Rosa region.


            Nationally, production of craft beer increased 18% during the  
            first six months of 2014, with a new craft brewery opening  
            every 16 hours in the US according to the Brewers Association.  
             Given craft beer's popularity in California, this state's  








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            industry growth is likely even faster than that.  Today,  
            California has over 480 craft brewers, the most of any state.





          Analysis Prepared by:Joel Tashjian / APPR. / (916)  
          319-2081