BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 520
                                                                  Page  1

          Date of Hearing:   January 23, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 520 (Chesbro) - As Amended:  January 6, 2014 

          Policy Committee:                              Governmental  
          Organization Vote:                            15-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill expands the types of licensees that may conduct  
          instructional tasting events regarding wine or distilled spirits  
          at on-sale retail licensed premises and places additional  
          restrictions on the instructional tasting events, including  
          restrictions on the types of advertising that may be conducted  
          prior to those events.  The bill does not change current law  
          tasting limitations on the amounts that may be provided to a  
          consumer at those events.

           FISCAL EFFECT  

          The bill may result in minor, absorbable enforcement costs to  
          the Department of Alcoholic Beverage Control.

           COMMENTS  

          Purpose.  The author contends this measure would update an  
          existing provision of the Alcoholic Beverage Control Act, which  
          permits a wine or distilled spirits manufacturer to conduct an  
          instructional consumer tasting event at an on-sale retail  
          licensed premise under specified conditions.

          Sponsored by the Wine Institute, the changes in this bill would:  


          a)Allow an authorized licensee, or its designated  
            representative, and the on-sale retailer to provide  
            advertising for the event, as defined.

          b)Allow a wine and spirits wholesaler to conduct retail on-sale  








                                                                  AB 520
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            tastings on behalf of a manufacturer without prior approval.

          The bill also contains technical and conforming changes to  
          current law.

           Analysis Prepared by  :    Joel Tashjian / APPR. / (916) 319-2081