BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: AB 776 Hearing Date: 7/14/2015
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|Author: |Cooper |
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|Version: |4/15/2015 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Arthur Terzakis |
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SUBJECT: Alcoholic beverage control: beer manufacturer:
brewery event
DIGEST: This bill adds a new provision to the Alcoholic
Beverage Control (ABC) Act that enables a licensed beer
manufacturer to apply to the Department of ABC for a brewery
event permit which would grant the licensee the privilege of
selling beer it produces for consumption on property contiguous
and adjacent to its licensed premises for special events (up to
four such events in a calendar year).
ANALYSIS:
Existing law:
1)Establishes the Department of ABC and grants it exclusive
authority to regulate the licensing, enforcement, and
administration of the alcoholic beverage control laws.
2)Authorizes a beer manufacturer to sell or serve all beer,
wines, and brandy, regardless of source, to guests during
private events held on the licensed beer manufacturer's
premises, as specified.
3)Authorizes a licensed winegrower to apply to the Department of
ABC for a wine sales event permit that allows the sale of
bottled wine produced by that winegrower at specified events
approved by the Department of ABC. The law prohibits a wine
AB 776 (Cooper) Page 2 of ?
sales event permit from being used more than two times a month
at a particular location and requires the winegrower to pay a
fee of $50 for the permit.
This bill:
1)Allows a licensed beer manufacturer to apply to the Department
of ABC for a brewery event permit which would allow the sale
of beer produced by the licensee for consumption on property
contiguous and adjacent to the licensed premises owned or
under the control of the licensee.
2)Limits the number of events authorized by a brewery event
permit to no more than four in any calendar year.
3)Stipulates that the fee for a brewery event permit issued
during the 2016 calendar year shall be one hundred ten dollars
($110), and for a permit issued during the years thereafter,
the annual fee shall be calculated, as specified. The permit
may be renewed annually at the same time as the licensee's
license and shall be transferable as a part of the license.
4)Specifies that for each brewery event, consent for the sale of
beer must be obtained by the licensee from the Department of
ABC in the form of an event authorization issued by the
Department. Also, provides that an event authorization shall
be subject to approval by the appropriate local law
enforcement agency and limits the fee for each event
authorization to no more than twenty-five dollars ($25).
5)Provides that all money collected as fees shall be deposited
in the ABC Fund for allocation, upon appropriation by the
Legislature.
6)Makes it explicit that at all approved events, the licensee
may exercise only those privileges authorized by the
licensee's license and requires the licensee to comply with
all provisions of the ABC Act pertaining to the conduct of
on-sale premises. Any violation of those provisions may be
grounds for suspension or revocation of the licensee's license
or permit, or both, as though the violation occurred on the
licensed premises.
7)Specifies that the Department of ABC may adopt any regulations
necessary for the administration of this bill.
AB 776 (Cooper) Page 3 of ?
Background
Purpose of AB 776. According to the author's office, this bill
is intended to allow brewery owners to apply to the Department
of ABC for a temporary expansion of their permitted brewery
premises for special events. The temporary permit for premises
expansion would be limited to only the property that is
immediately adjacent to, or contiguous to, the existing brewery
premises. The author's office states that this bill will enable
breweries 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's office points out that current law authorizes wineries
to apply for a similar temporary permit for special events -
this bill simply extends that privilege to breweries.
Beer-Lovers Revolution. According to the California Craft
Brewers Association, the craft brewing industry in California is
growing rapidly, supporting 50,000 jobs with an annual impact of
$6.5 billion to the state economy. 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 with about $1.4 million in
direct expenditures related to the event.
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 United States according to the Brewers
Association. Given craft beer's popularity in California, this
state's industry growth is likely even faster than that - today,
California has over 480 craft brewers, the most of any state.
Prior/Related Legislation
AB 774 (Levine, 2015) allows a licensed beer manufacturer that
holds a certified farmers' market beer sales permit to provide
limited instructional tastings for consumers at a certified
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farmers' market, under specified conditions.
AB 2488 (Levine, Chapter 98, Statutes of 2014) expanded an
existing privilege in the ABC Act relating to the sale of wine
by a licensed winegrower at certified farmers' markets to also
allow a licensed winegrower the privilege of conducting limited
wine tastings for consumers at farmers' markets under certain
circumstances.
AB 2004 (Chesbro, Chapter 806, Statutes of 2014), among other
things, authorized a licensed beer manufacturer to apply to the
Department of ABC for a "certified farmers' market beer sales
permit" for the purpose of allowing the licensee to sell
packaged beer at a farmers' market, including any area outside
the footprint of the farmers' market, under specified
conditions.
ACR 116 (Chesbro, Resolution Chapter 43, Statutes of 2014)
proclaimed the month of April 2014 as California Craft Brewery
Month.
AB 2134 (Chesbro, Chapter 149, Statutes of 2010) created a new
tied-house exception in the ABC Act that allows licensed brewers
to conduct and participate in events called "Beer Maker Dinners"
for consumers held at an on-sale retail licensed premises.
SB 1548 (Murray, Chapter 670, Statutes of 2006) authorized beer
manufacturers and wholesalers to offer beer samples (not to
exceed eight ounces per person, per day) to individuals of legal
drinking age at on-sale retail licensed premises under specified
conditions.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: No
SUPPORT:
California Craft Brewers Association
OPPOSITION:
None received
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