BILL ANALYSIS Ó
AB 893
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Date of Hearing: April 8, 2015
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Adam Gray, Chair
AB 893
(Mark Stone) - As Introduced February 26, 2015
SUBJECT: Beer: labels
SUMMARY: Would allow the Department of Alcoholic Beverage
Control (ABC) to accept the filing of beer label applications by
any means it determines are appropriate, including filing by
mail or electronic filing. Specifically, this bill:
1) Provides that beer shall not be imported into, or sold
within, this state unless the label for that beer is first filed
with ABC, in accordance with any rules and regulations of the
department.
2) Provides ABC may accept the filing of labels by any means it
determines are appropriate, including filing by mail or
electronic filing. Provides ABC may elect to waive all or part
of any fees paid or incurred by licensees in filing labels as
required.
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3) Specifies for the purpose of insuring consistency in the
filings, ABC may promulgate guidelines by rules and regulations
establishing the label information it deems necessary.
4) Specifies that a violation of this section shall not subject
the licensee to any civil or criminal penalties.
EXISTING LAW:
1) Establishes ABC and grants it exclusive authority to
administer the provisions of the ABC Act in accordance with laws
enacted by the Legislature. This involves licensing individuals
and businesses associated with the manufacture, importation and
sale of alcoholic beverages in this state and the collection of
license fees or occupation taxes for this purpose.
2) Imposes various requirements relating to the labels and
containers of alcoholic beverages sold within the state,
including a requirement that every manufacturer or bottler of
beer whose beer is sold within the state file with ABC the brand
name or names under which the beer is sold or labeled, as
provided. California labeling requirements are detailed in
Sections 25200-25206 of the Alcoholic Beverage Control Act (ABC
Act) and Rule 130 of the California Code of Regulations.
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3) Under Federal law, the Treasury Department's Alcohol and
Tobacco Tax and Trade Bureau (TTB) is responsible for
implementing and enforcing a broad range of statutory and
compliance provisions and ensuring that alcohol products are
created, labeled, and marketed in accordance with the Federal
Alcohol Administration (FAA) Act.
FISCAL EFFECT: Unknown
COMMENTS:
Purpose of the bill : According to the author's office, a
manufacturer of beer must have their labels approved by ABC,
which contains specific information about the product. This
information includes: the name and location of the manufacturer
(city and state) and bottler (if different), name of the beer in
the container, alcohol content is mandatory if 5.7% abv or
greater (It is optional if below) and the net contents of the
container. Currently, the label application (ABC form 412) can
be sent to ABC by mail or fax.
The author states as the beer industry grows, it still must
comply with our state's labeling laws. Much of the success of
the craft brewing industry is a result of its ability to offer
new products to the market, based on seasonal demand and market
trends. Under current law, each change in beverage product
requires the brewer to seek label approval for that product in
every quantity that the brewer intends to sell. Because of the
rapid growth of this industry, ABC has received a dramatic
increase in label approval applications that it struggles to
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approve in a timely manner.
AB 893 will help ABC streamline the label application process.
In addition, the bill will provide California's craft brewers
with the ability to update their labels to match their current
products on a timeline that meets the expectations of the
consumer.
The author points out that several states have implemented
electronic systems to approve labels, and it has proven to
expedite the review and approval process.
Background : The mission of ABC is to administer the provisions
of the ABC Act in a manner that fosters and protects the health,
safety, welfare, and economic well-being of the people of the
State. California Constitution, Article XX, Section 22, vests
ABC with the exclusive right and power to license and regulate
the manufacture, importation, and sale of alcoholic beverages
within the State.
Any beer container sold within this state shall bear a label
that conforms with the alcohol content labeling requirements
prescribed in Section 7.71 of Part 7 of Title 27 of the Code of
Federal Regulations, as adopted pursuant to the Federal Alcohol
Administration Act (27 U.S.C. Sec. 201 et seq.). Existing law
provides every manufacturer or bottler of beer in this state or
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elsewhere whose beer is sold within the state shall file with
ABC (Form ABC-412, Label Approval Application) the brand name or
names under which they sell or label their beer. An original
label of each brand and size listed on Form 412 must be included
with the form. Photocopies are not acceptable.
Any labels or notices affixed to beer must, if such beer is
produced in this state, be affixed prior to the first sale, and
in the case of beer produced outside the state and imported into
California, must be affixed prior to delivery in this state.
Who regulates alcohol labeling at the Federal level ? TTB is
responsible for regulating the labeling of alcohol beverages
under the provisions of the Federal Alcohol Administration (FAA)
Act, 27 U.S.C. 205(e). TTB's statutory mandate is to prevent
consumer deception and ensure the label provides the consumer
with adequate information as to the identity and quality of the
product.
The FAA Act requires that the alcoholic beverage industry seek
approval of their labels. The administration and enforcement is
done through the issuance of permits and through procedures that
require the prior approval of all labels. In addition, TTB is
charged with the administration and enforcement of Chapter 51 of
the IRC, relating to Distilled Spirits, Wines and Beer. This
chapter in conjunction with the FAA Act establishes a system of
control of alcoholic beverages, including formulas showing each
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ingredient to be used in the product.
TTB issues regulations governing the labeling and advertising of
wine, distilled spirits, and malt beer. Pursuant to the FAA Act,
Section 5, TTB is vested with the authority to promulgate
regulations to make sure that they provide the consumer with
adequate information concerning the identity and quality of such
products. The TTB also enforces the Alcohol Beverage Labeling
Act of 1988 requiring the appearance of a health warning
statement on all alcohol beverages for sale and distribution in
the United States (U.S.) containing 0.5% or more alcohol by
volume.
Prior legislation : AB 2203 (Chesbro), Chapter 236, Statutes of
2014. Adds metal kegs to an existing provision of the ABC Act
that prohibits the obliteration, mutilation, or marking out of a
manufacturer's name on returnable beer containers or cartons
made of wood or fiber board.
AB 647 (Chesbro), Chapter 686, Statutes of 2013. Added clarity
to existing provisions of the ABC Act relative to labeling
requirements for the refilling of off-sale consumer-sized beer
containers, known as "growlers," by beer manufacturers, and the
serving of beer, as specified, by a beer manufacturer or
brewpub-restaurant licensee; and makes technical code
maintenance changes.
AB 346 (Beall), Chapter 624, Statutes of 2008. Provided that
any container of beer or alcoholic beverage, other than sake,
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that is approved for labeling as a malt beverage under the
Federal Alcohol Administration Act (FAAA), that derives 0.5% or
more of its alcoholic content by volume from flavors or other
ingredients containing distilled alcohol and that is sold within
this state on or after July 1, 2009, shall bear a distinctive,
conspicuous, and prominently displayed label, or firmly affixed
sticker, as defined.
REGISTERED SUPPORT / OPPOSITION:
Support
California Craft Brewers Association
Opposition
None on file
Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531
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