BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2488
                                                                  Page  1

          Date of Hearing:   April 30, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 2488 (Levine) - As Amended:  April 28, 2014 

          Policy Committee:                              Governmental  
          Organization Vote:                            19-0

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

           SUMMARY  

          This bill allows a licensed winegrower to apply to the operator  
          of a certified farmers' market for authorization to conduct an  
          instructional wine tasting for consumers at the certified  
          farmers' market, and specifies the manner in which the tasting  
          may be conducted.

           FISCAL EFFECT  

          Minor and absorbable enforcement costs to the California  
          Department of Alcoholic Beverage Control.  These costs could  
          increase if sales at certified farmers' markets prove especially  
          popular and wineries begin using farmers' markets as a primary  
          marketing channel.

           COMMENTS  

          1)  Purpose.   Estate grown wine, which must be produced from  
            grapes grown by the winemaker and bottled by the winemaker, is  
            currently eligible for sale at certified farmers' markets.   
            According to the author and supporters, few wineries currently  
            sell at certified farmers' markets, however, in part because  
            consumers are accustomed to sampling wine before purchasing.   
            Consumer sampling may be particularly important for the sale  
            of estate wines, which often cost between $15-25 a bottle.

          2)  Tastings at certified farmers' markets.   In order for a winery  
            to conduct an instructional tasting at a certified farmers'  
            market, AB 2488 allows only one licensee to conduct an  
            instructional tasting at any one market, and requires that the  
            licensee:








                                                                  AB 2488
                                                                  Page  2


             a)   Conduct the tasting itself, or have a member of the  
               licensee's family or an employee of the licensee conduct  
               the tasting.

             b)   Separate the tasting area from the remainder of the  
               market using a rope or other similar barrier.

             c)   Not permit any consumer to leave the tasting area with  
               an open container of wine.

             d)   Not pour more than three ounces of wine per person per  
               day

             e)   Not give away any gifts or other free goods in  
               connection with the tasting.

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