BILL ANALYSIS
AB 1649
Page 1
Date of Hearing: April 21, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1649 (Chesbro) - As Amended: March 15, 2010
Policy Committee: Governmental
Organization Vote: 20 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill allows a winery to produce spirits of wine (a
byproduct of wine fermentation) under specified conditions
without having to additionally obtain a distilled spirits
manufacturer's license. Specifically, this bill:
1)Expands the authorized activities that a licensed winegrower
may conduct to include the production of spirits of wine,
provided those spirits of wine are either blended into wine
produced by the winegrower, sold to an industrial alcohol
dealer, or destroyed by the winegrower.
2)Makes other conforming and clarifying changes with regard to a
licensed winegrower's authorization to sell wine and brandy.
FISCAL EFFECT
Any costs associated with this legislation would be minor and
absorbable within the Department of Alcoholic Beverage Control's
existing resources.
COMMENTS
1)Rationale . According to the bill's sponsor, the Wine
Institute, while existing law authorizes a winery to produce
the spirits of wine byproduct it is unclear whether or not the
winery needs to obtain a Type 04 distilled manufacturer's
license to deal with this byproduct. AB 1649 states a winery
does not need to purchase a separate distilled spirits
manufacturer's license when producing spirits of wine
(byproduct of wine fermentation) provided the spirits of wine
AB 1649
Page 2
are blended into the wine produced by the winegrower, are sold
to an industrial alcohol dealer, or are destroyed by the
winegrower.
2)Related Legislation . AB 1470 (Evans; Chapter 535, Statutes of
2009) removed the prohibition against licensed winegrowers or
brandy manufacturers from selling wine for consumption at a
branch office, essentially extending wine-by-the-glass
privileges to a duplicate license.
AB 2004 (Evans; Chapter 127, Statutes of 2008) authorized a
licensed winegrower to sell wine to consumers for on-premises
consumption.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081