BILL ANALYSIS Ó AB 776 Page 1 Date of Hearing: May 20, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 776 (Cooper) - As Amended April 15, 2015 ----------------------------------------------------------------- |Policy |Governmental Organization |Vote:|20 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- 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: AB 776 Page 2 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 AB 776 Page 3 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