BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1649|
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CONSENT
Bill No: AB 1649
Author: Chesbro (D)
Amended: 3/15/10 in Assembly
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 6-0, 6/9/10
AYES: Wright, Negrete McLeod, Padilla, Price, Wyland, Yee
NO VOTE RECORDED: Harman, Calderon, Denham, Florez,
Oropeza
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 77-0, 5/3/10 - See last page for vote
SUBJECT : Alcoholic beverage licensees: winegrowers
SOURCE : Wine Institute
DIGEST : This bill allows licensed winegrowers to produce
spirits of wine (a byproduct of wine fermentation) under
specified conditions without having to additionally obtain
a distilled spirits manufacturer's license.
ANALYSIS : Existing law establishes the Department of
Alcoholic Beverage Control (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.
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Existing law defines "distilled spirits manufacturer" to
mean any person who produces distilled spirits from
naturally fermented materials or in any other manner.
Existing law authorizes a licensed winegrower to conduct
specified activities, including authorizing a licensed
winegrower to sell wine and brandy for consumption to
consumers for on-premises consumption, as specified.
Existing law authorizes an on-sale beer and wine public
premises licensee and a licensed winegrower who exercises
his or her license privileges at specified locations to
allow a person who has purchased and partially consumed a
bottle of wine to remove the partially consumed bottle from
the premises upon departure.
This bill:
1. Adds clarity to the definition of "distilled spirits
manufacturer," within the ABC Act, by stipulating that a
distilled spirits manufacturer shall not include a
winegrower that produces spirits of wine, provided the
spirits of wine are blended into wine produced by the
winegrower, are sold to an industrial alcohol dealer, or
are destroyed by the winegrower.
2. Expands the privileges afforded a licensed winegrower to
include the production of spirits of wine and blending
those spirits of wine into wine produced by the
winegrower or selling those spirits of wine to an
industrial alcohol dealer.
3. Makes clarifying changes with respect to a licensed
winegrower's authorization to sell only their own wine
or brandy by the glass or bottle that is produced under
their original or duplicate license.
Prior/Related Legislation
AB 1470 (Evans) Chapter 535, Statutes of 2009, authorizes
winegrowers to sell wine for consumption at a "branch
office," warehouse, or an off-site cellar, and removed the
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requirement that the Department of ABC issue a "duplicate"
license "forthwith." Also, authorizes an on-sale beer and
wine public premises licensee to allow a person who has
purchased and partially consumed a bottle of wine to remove
the partially consumed bottle from the premises upon
departure.
AB 2004 (Evans) Chapter 127, Statutes of 2008, authorizes a
winery to sell wine for consumption on the winery's
grounds, such as at a picnic area within the boundaries of
the winery. Also, grants any winegrower the same privilege
that is currently available to any on-sale licensee which
maintains a restaurant, which permits the licensee to allow
a patron to remove from the premises upon departure, a
bottle of wine that has been opened (partially consumed).
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/22/10)
Wine Institute (source)
Family Winemakers of California
ARGUMENTS IN SUPPORT : 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 spirits manufacturer's license to deal with this
byproduct. The sponsor points out that many wineries use
reverse osmosis, or the spinning cone technique, to reduce
the alcohol content in their wines. This measure would
simply clarify that 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 are blended into the wine
produced by the winegrower, are sold to an industrial
alcohol dealer, or are destroyed by the winegrower. This
measure would also make minor clarifying changes to the
newly enacted wine-by-the-glass law.
ASSEMBLY FLOOR :
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AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall,
Bill Berryhill, Tom Berryhill, Blakeslee, Block,
Blumenfield, Bradford, Brownley, Buchanan, Caballero,
Charles Calderon, Carter, Chesbro, Conway, Cook, Coto,
Davis, De La Torre, De Leon, DeVore, Emmerson, Eng,
Evans, Feuer, Fletcher, Fong, Fuentes, Fuller, Furutani,
Gaines, Galgiani, Garrick, Gilmore, Hagman, Harkey,
Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries,
Jones, Knight, Lieu, Logue, Bonnie Lowenthal, Ma,
Mendoza, Miller, Monning, Nava, Nestande, Niello,
Nielsen, Norby, V. Manuel Perez, Portantino, Ruskin,
Salas, Saldana, Silva, Skinner, Smyth, Solorio, Audra
Strickland, Swanson, Torlakson, Torres, Torrico, Tran,
Villines, Yamada
NO VOTE RECORDED: Hall, John A. Perez, Vacancy
TSM:do 6/22/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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