BILL ANALYSIS
AB 2134
Page 1
Date of Hearing: April 28, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2134 (Chesbro) - As Amended: April 19, 2010
Policy Committee: Governmental
Organization Vote: 20 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill allows licensed brewers to conduct and participate in
events called "Beer Maker Dinners" for consumers held at
restaurants that purchase a brewer's products featuring craft
beers paired with food. This measure creates a tied-house
exception similar to one in existing law for winemakers.
Specifically, this bill:
1)Allows a brewer or their representative to participate in an
on-site instructional event and to take orders for the sale of
beer, if the transaction is completed at the beer
manufacturer's licensed premises.
2)Allows brewers to advertise an instructional event as long as
the advertisement does not contain the retail price of the
beers.
3)Prohibits any alcoholic beverages from being given away at the
event.
FISCAL EFFECT
Negligible non-reimbursable costs for local prosecution and/or
incarceration, offset by fine revenue, for misdemeanor
violations of provisions associated with the tied-house
exception.
COMMENTS
AB 2134
Page 2
1)Rationale . According to the sponsor, the California Small
Brewers Association, this bill will allow beer manufacturers
and importers the privilege of participating in "Beer Maker
Dinners" at licensed on-sale retail premises (i.e.
restaurants) and communicating the date, time and location of
these events to their customers.
Under current law, winegrowers are able to conduct "Wine Maker
Dinners" at licensed retail facilities. The law allows a
winegrower representative to conduct the educational event
without compensation from the retail establishment; and allows
the winegrower to advertise the event under specified
conditions.
2)Background. The tied-house law refers to the statutory
restriction on cross-ownership among the three tiers of the
alcohol industry: manufacturers, distributors/wholesalers, and
retailers. The Legislature has generally prohibited forms of
cross-ownership between manufacturers and retailers, and
discouraged manufacturers from providing anything of value -
free goods, services, or advertising - to distributors or
retailers. Numerous exceptions to these restrictions have been
enacted over the years in instances where the Legislature
determined that the public's interests are protected.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081