BILL ANALYSIS �
Bill No: SB
1040
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Lou Correa, Chair
2013-2014 Regular Session
Staff Analysis
SB 1040 Author: Evans
As Introduced: February 18, 2014
Hearing Date: April 8, 2014
Consultant: Art Terzakis
SUBJECT
Alcoholic Beverages: wine labeling
DESCRIPTION
SB 1040 updates an existing provision of the Alcoholic
Beverage Control (ABC) Act relative to false
representations of a wine's appellation made on the
producer's label, business material, and advertising matter
to also include representations made on "bottles" and in an
"electronic" format.
EXISTING LAW
Under existing law, the Department of Alcoholic Beverage
Control (ABC) regulates the licensing, enforcement, and
administration of the alcoholic beverage control laws.
Existing law makes it unlawful to make any representation
that dry wine produced entirely from grapes grown in
specified counties (Sonoma, Napa, Mendocino, Lake, Santa
Clara, Santa Cruz, Alameda, San Benito, Solano, San Luis
Obispo, Contra Costa, Monterey, and Marin) may be labeled
with the words "California central coast counties dry wine"
unless the representation is true. These provisions apply
to representations made on labels, advertising matter,
letterheads, invoices, tags, signs, business cards, and all
other representations of any kind whether oral, written, or
printed. The ABC Act makes a violation of these provisions
a misdemeanor.
SB 1040 (Evans) continued
Page 2
Existing law requires that, when the word "Napa" (or any
federally recognized viticultural region within Napa
County) appears on a brand label, at least 75 percent of
the grapes used to make that wine must be from Napa County.
Existing law requires wines produced within the "Napa
Valley" to be labeled as being derived from that valley, if
the wine label indicates that they are produced within a
separate viticultural area within the Napa Valley, in order
to preserve consumer identification and understanding.
Existing law requires any wine bottled on or after January
1, 2014, labeled with an American Viticultural Area
established pursuant to federal law that is located
entirely within Sonoma County, to bear the designation
"Sonoma County" on the label in specified type size as
determined by the size of the wine container, as
prescribed.
Existing law prohibits the sale of wine produced, bottled,
or labeled after December 31, 2008, in this state that
identifies, in a brand name or otherwise, on any label,
packaging material, or advertising, the name "Sonoma,"
unless at least 75 percent of the grapes used to make the
wine are from Sonoma County, as specified.
Existing law requires all wines produced or bottled within
the current Paso Robles appellation to be labeled with the
designation "Paso Robles."
Existing law requires all wines produced or bottled within
the current Lodi appellation to be labeled with the
designation "Lodi."
Existing law stipulates that every person who, with intent
to defraud, either falsely makes, alters, forges, or
counterfeits the label for any wine or uses the label or
bottle of any wine belonging to another, without his or her
consent, is guilty of a misdemeanor.
BACKGROUND
Purpose of SB 1040: As noted above, current law requires
that only wine produced entirely in certain counties may be
SB 1040 (Evans) continued
Page 3
labeled as "California central coast counties dry wine."
These representations are generally made on labels, the
manufacturer's business materials, advertising matter, and
other representations as specified.
According to the author's office, the proposed change is
needed because the code section that established the
unlawfulness of falsely representing the origins of a
wine's grapes is outdated and has not been updated since
the 1950s. The author's office points out marketing
techniques have evolved and the existing code should
reflect current market practices. This measure would simply
include representations made directly on "bottles" or in an
"electronic" format (e.g. e-mail or Internet web-sites).
PRIOR/RELATED LEGISLATION
AB 2349 (Nestande), Chapter 374, Statutes of 2012. Among
other things, provided that the listing of names,
addresses, telephone numbers, or email addresses in other
forms of electronic media do not constitute a thing of
value, pursuant to ABC tied-house laws.
AB 1798 (Evans), Chapter 242, Statutes of 2010. Required
any wine bottled on or after January 1, 2014, labeled with
a viticultural area established pursuant to federal law
that is located entirely within Sonoma County, to bear the
designation "Sonoma County" on the label in specified type
size as determined by the size of the wine container, as
prescribed.
AB 2397 (Aghazarian), Chapter 75, Statutes of 2008.
Required all wines produced or bottled within the current
Lodi appellation to be labeled with the designation "Lodi."
AB 87 (Blakeslee), Chapter 674, Statutes of 2007. Among
other things, required any wine labeled with a viticultural
area appellation of origin established pursuant to federal
law, other than the viticultural area "Paso Robles," that
is located entirely within the "Paso Robles" viticultural
area name bear the designation "Paso Robles" on the label
in conjunction with the area designation of wine.
SB 1380 (Chesbro), Chapter 879, Statutes of 2006.
Prohibited the sale of wine produced, bottled, or labeled
after December 31, 2008, in this state that identifies, in
SB 1040 (Evans) continued
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a brand name or otherwise, on any label, packaging
material, or advertising, the name "Sonoma," unless at
least 75% of the grapes used to make the wine are from
Sonoma County, as specified.
SB 1293 (Chesbro), Chapter 831, Statutes of 2000. Added a
new body of law to the ABC Act for the stated purpose of
eliminating consumer confusion with respect to the origin
of wine grapes and protecting the value of the Napa Valley
name. Essentially, this measure made it explicit that
when the word "Napa" appeared on a brand label, at least
75% of the grapes used to make that wine must be from Napa
County.
SB 771 (Thompson), Chapter 588, Statutes of 1989. Required
wines produced within the "Napa Valley" to be labeled as
being derived from that valley, if the wine label indicates
that they are produced within a separate viticultural area
within the Napa Valley, in order to preserve consumer
identification and understanding. This requirement applied
to all wines bottled on or after January 1, 1990.
SUPPORT: None on file as of April 4, 2014.
OPPOSE: None on file as of April 4, 2014.
FISCAL COMMITTEE: Senate Appropriations Committee
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