BILL ANALYSIS Ó
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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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|Policy |Governmental Organization |Vote:|20 - 0 |
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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