BILL ANALYSIS �
Bill No: AB
351
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
AB 351 Author: Chesbro
As Introduced: February 10, 2011
Hearing Date: June 26, 2012
Consultant: Art Terzakis
SUBJECT
Alcoholic Beverages: instructional tastings
DESCRIPTION
AB 351 permits winegrowers and beer manufacturers to
describe the "composition" of their products, in addition
to other characteristics already permitted, when engaging
in tastings or instructional events for their licensees or
employees.
EXISTING LAW
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 for this purpose.
Existing law permits a winegrower, beer manufacturer, or a
beer and wine wholesaler to instruct licensees and their
employees on the subject of wine or beer, including but not
limited to, the history, nature, values, and
characteristics of those beverages, as provided.
The ABC Act permits an on-sale retail licensee of wine or
distilled spirits to conduct "instructional" consumer
tastings on the licensed retail premise provided the
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following conditions are met: (1) no more than ounce of
distilled spirits is offered in one tasting; (2) no more
than one ounce of wine is offered in one tasting; and, (3)
no more than three tastings are offered to an individual in
one day. An instruction may include the history, nature,
values and characteristics of the product being offered,
and the methods of presenting and serving the product.
Existing law authorizes beer manufacturers and wholesalers
to offer beer samples (not to exceed 8 ounces per person,
per day) to individuals of legal drinking age at on-sale
retail licensed premises under specified conditions.
Existing law permits a licensed winegrower, manufacturer,
importer, or wholesaler to provide samples of the alcoholic
beverages which are authorized to be sold by the licensee
in accordance with rules prescribed by the ABC. A retail
licensee, however, is not authorized to provide any free
samples of alcoholic beverages. Moreover, ABC regulations
provide that samples of alcoholic beverages may only be
given away to licensees or employees of licensees who are
in a position to purchase the product or who are in need of
additional information about the product, as specified.
Existing law, known as the "tied-house" law, separates the
alcoholic beverage industry into three component parts of
manufacturer, wholesaler, and retailer. The original
policy rationale for this body of law was to prohibit the
vertical integration of the alcohol industry and to protect
the public from predatory marketing practices. Generally,
other than exemptions granted by the Legislature, the
holder of one type of license is not permitted to do
business as another type of licensee within the
"three-tier" system.
BACKGROUND
According to the author's office, this measure is sponsored
by the California Craft Brewers Association - its members
represent approximately ninety-five percent of the craft
beer production in California. These craft brewers are
producing award-winning beers that are recognized and
purchased in national and international markets. In
addition, they have installed tasting rooms to accommodate
consumers and to facilitate tourism and economic growth in
their local communities. The author's office notes that
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craft breweries have also taken advantage of expanded
opportunities for on-site beer tastings at restaurants and
bars. During such tasting events, consumers usually
inquire as to the actual "composition" of the beers - they
are also curious about specific ingredients due to various
gastronomic interests or food allergies. The author's
office claims that existing law does not explicitly permit
a response to questions relating to "composition" of the
beer. AB 351 is simply intended to affirmatively provide
that authority.
The sponsor believes that by clarifying the law in this
manner, AB 351 will be consistent with the state's economic
recovery goals and promotion of California businesses and
their increasingly popular products to local, national and
international markets.
PRIOR/RELATED LEGISLATION
AB 605 (Portantino) Chapter 230, Statutes of 2010. Added
new provisions to the ABC Act authorizing the department to
issue to the holder of an "off-sale" retail license an
"instructional tasting license" for the purpose of
furnishing tastings of alcoholic beverages to consumers,
subject to certain limitations.
AB 2293 (De Leon) Chapter 638, Statutes of 2008. Added a
new provision to the ABC Act that permits distilled spirits
manufacturers and winegrowers to provide their product
offerings directly to consumers (free of charge) during
invitation-only events on premises for which a caterer's
permit authorization has been issued.
SB 1548 (Murray) Chapter 670, Statutes of 2006. Authorized
beer manufacturers and wholesalers to offer beer samples
(not to exceed 8 ounces per person, per day) to individuals
of legal drinking age at on-sale retail licensed premises
under specified conditions.
AB 2285 (V. Brown) Chapter 248, Statutes of 1998. Allowed
on-sale retail licensees to offer limited tastings of wine
or distilled spirits at the licensed establishment.
SB 993 (Burton) Chapter 544, Statutes of 1997. Among other
things, authorized a licensed distilled spirits
manufacturer to conduct tastings of distilled spirits on
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the licensed premises under specified conditions.
SUPPORT: As of June 22, 2012:
California Craft Brewers Association
OPPOSE: None on file as of June 22, 2012
FISCAL COMMITTEE: No
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