BILL ANALYSIS �
AB 520
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 520 (Chesbro)
As Amended February 11, 2014
Majority vote
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|ASSEMBLY: |78-0 |(January 29, |SENATE: |34-0 |(August 14, |
| | |2014) | | |2014) |
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Original Committee Reference: G.O.
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.
The Senate amendments :
1) State that no more than one authorized licensee or its
designated representative shall conduct an instructional tasting
pursuant to this section at the on-sale retail licensed premises
of an on-sale retail licensee at any time, and a person shall
not act as the designated representative for more than one
authorized licensee at that instructional tasting.
2) Specify that an "Authorized licensee" shall not include any
person that solely holds a combination of a beer and wine
wholesaler license and an off-sale beer and wine retail license
or holds those licenses solely in combination with any license
not listed or in combination with a beer and wine importer
general license, or holds a limited off-sale retail wine
license.
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
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alcoholic beverages in this state and the collection of license
fees.
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, as a limited exception to the general tied-house
rule, winegrowers and their agents, including wine importers, to
conduct and participate in instructional events known as "meet
the winemaker" dinners held at a retailer's premises featuring
the winemaker's wine, provided certain conditions are met.
Although no wine can be given away at the events, minimal
amounts of wine, taken from barrels or tanks, may be sample
tasted. In addition, no more than three one-ounce tastes of
wine per consumer may be offered at the instructional event from
bottles of wine provided by the authorized person. Provides
that minimal amounts of the samples or tastes provided at the
instructional event do not constitute a thing of value.
4) Permits, as a limited exception to the general tied-house
rule, a winegrower, beer manufacturer, beer or wine wholesaler,
distilled spirits manufacturer, distilled spirits general
rectifier, or distilled spirits general importer to conduct
"instructional" tastings for licensees and their employees on
the subject of wine, beer, or distilled spirits. Also permits a
winegrower or distilled spirits manufacturer to instruct
"consumers" at an on-sale licensed retail premise provided
certain conditions are met.
5) Authorizes, as a limited exception to the general tied-house
rule, beer manufacturers, beer wholesalers, and beer importers
to conduct instructional beer tastings (not to exceed eight
ounces per person, per day) to consumers of legal drinking age
at on-sale retail licensed premises under specified conditions.
6) Prohibits any licensee from giving any premium, gift, or
free goods in connection with the sale or distribution of any
alcoholic beverage, except as specifically authorized. The ABC
Act provides that a violation of any of its provisions for which
another penalty or punishment is not specifically provided is a
misdemeanor.
7) Defines an "on-sale" license as authorizing the sale of all
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types of alcoholic beverages, namely, beer, wine and distilled
spirits, for consumption on the premises (such as at a
restaurant or bar); and an "off-sale" license authorizes the
sale of all types of alcoholic beverages for consumption off the
premises in original, sealed containers.
AS PASSED BY THE ASSEMBLY , this bill allowed an authorized
licensee, or its designated representative, and the on-sale
retailer to provide advertising for the event, as defined. In
addition, allowed a wine and spirits wholesaler to conduct
retail on-sale tastings on behalf of a manufacturer without
prior approval.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : This bill, as amended in the Senate is consistent
with Assembly actions.
Purpose of the bill: According to the author's office, this
bill updates an existing 15-year-old statute that permits a
winery or distilled spirits manufacturer to conduct a consumer
tasting at an on-sale retailer's licensed premises. The updates
are twofold: 1) the supplier, wholesaler, and the on-sale
retailer are separately authorized to provide advertising for
the event, and 2) a wine and spirits wholesaler is authorized to
conduct the tasting for their supplier. For simplicity's sake,
the existing privilege in Business and Professions Code Section
25503.5 is transferred into a new Section 25503.57. The
language is not verbatim to the off-sale tastings law due to the
fact that the Office of Legislative Counsel made some cleanup,
but non-substantive, changes.
The author's office points out that other tastings laws found in
the ABC Act (e.g., the winemaker dinner and off-sale tastings
statutes) already permit the supplier, wholesaler, and retailer
to provide their own advertising, such as on their Facebook
pages. The wine industry has asked that this issue be addressed
through the code conformity change. In addition, the author's
office states that ABC has opined that a wholesaler is required
to obtain a letter-of-approval from its supplier before
conducting a tasting at a restaurant or nightclub - this is a
paperwork hassle - and this bill addresses this administrative
burden, as well.
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In opposition: Alcohol Justice "objects to AB 520 because it
expands the types of licensees that may provide instructional
tastings events regarding wine or distilled spirits at on-sale
retail licensed premises. Evidence shows that increased
availability of alcoholic beverages is correlated with an
increase in alcohol related harm."
Analysis Prepared by : Eric Johnson / G.O. / (916) 319-2531
FN: 0004456