BILL ANALYSIS �
AB 520
Page 1
Date of Hearing: January 13, 2014
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Hall III, Isadore, Chair
AB 520 (Chesbro) - As Amended: January 6, 2014
SUBJECT : Alcoholic beverages: instruction: tastings
SUMMARY : Expands the types of licensees (designated
representative) that may conduct instructional tastings events
regarding wine or distilled spirits at "on-sale" retail licensed
premises and would place additional restrictions on the
instructional tastings events, including restrictions on the
types of advertising that may be conducted prior to the event.
The bill does not change current law tasting limitations on the
amounts that may be provided to a consumer.
EXISTING LAW :
1) 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.
2) Separates the alcoholic beverage industry into three
component parts, or tiers, of manufacturer (including breweries,
wineries and distilleries), wholesaler, and retailer (both
on-sale and off-sale). This is known as the "tied-house" law.
3) 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.
4) Permits a winegrower or distilled spirits manufacturer, or
its authorized agent, to instruct consumers at an "on-sale"
retail licensed premises authorized to sell its product on the
subject of wine or distilled spirits under the following
conditions: (a) The instruction of consumers may include the
furnishing of not more than three tastings to any individual in
one day; (b) A single tasting of distilled spirits may not
AB 520
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exceed one-fourth of one ounce and a single tasting of wine may
not exceed one ounce; and, (c) An instruction may include the
history, nature, values and characteristics of the product being
offered, and the methods of presenting and serving the product.
FISCAL EFFECT : Unknown.
COMMENTS :
Purpose of the bill : According to the author's office, this
measure is intended to update an existing provision of the ABC
Act which permits a wine or distilled spirits manufacturer to
conduct an instructional consumer tasting at a retail on-sale
licensed premise, under specified conditions. The change to
current law is twofold: 1) allows an authorized licensee or its
"designated representative" and the on-sale retailer to provide
advertising for the event, as defined, and 2) allows a wine and
spirits wholesaler to conduct retail on-sale tastings on behalf
of a manufacturer without prior approval. In addition, the bill
contains technical and conforming changes to current law which
were drafted by Legislative Counsel.
The author's office claims that existing law (winemaker dinner
and off-sale retail tastings) permits a supplier and retailer to
advertise the designated event via newspaper ads, interior
signage, Internet communications, etc. AB 520 allows for those
same types of advertising mediums to be used by designated
licensees to advertise "on-sale" retail instructional tastings,
as defined.
The author's office further states that consumer tastings are an
important marketing tool for California's wineries to
distinguish themselves from their competitors. This bill will
grant wine producers additional opportunities to market their
product on a personal basis and help build brand awareness and
loyalty while not changing existing consumer safeguards which
were incorporated into previous legislation.
Related legislation : AB 1424 (Assembly Governmental
Organization Committee), 2013-2014 Legislative Session. 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. Senate Inactive File.
AB 520
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AB 816 (Hall), 2013-2014 Legislative Session. Merges two
similar tied-house exceptions (one pertaining to on-sale
retailers the other to off-sale retailers) within the ABC Act
which authorizes the dissemination of information regarding the
retail availability of products by alcoholic beverage producers,
distributors or importers in response to direct requests from
consumers.
Prior legislation : AB 636 (Hall), Chapter 329, Statutes of
2013. Permits, under specified conditions and until January 1,
2016, the appearance of a person for the purpose of providing
autographs at an instructional event for consumers that a
winegrower, California winegrower's agent, importer, or other
specified parties conduct, or participate in, that is held at a
retailer's premises featuring wines produced by or for the
winegrower or, imported by the wine importer.
AB 933 (Skinner and Hall), Chapter 366, Statutes of 2013.
Grants licensed distilled spirits manufacturers and licensed
brandy manufacturers the privilege to conduct consumer tastings
on their licensed premises and to charge for those tastings, as
defined.
AB 605 (Portantino) Chapter 230, Statutes of 2010. Authorizes
ABC 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. 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.
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SB 993 (Burton) Chapter 544, Statutes of 1997. Among other
things, authorized a licensed distilled spirits manufacturer to
conduct tastings of distilled spirits on the licensed premises
under specified conditions.
REGISTERED SUPPORT / OPPOSITION :
Support
Wine Institute
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531