BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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          |SENATE RULES COMMITTEE            |                       SB 1040|
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                                       CONSENT


          Bill No:  SB 1040
          Author:   Evans (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE GOVERNMENTAL ORGANIZATION COMMITTEE  :  9-0, 4/8/14
          AYES:  Correa, Berryhill, Cannella, De Le�n, Galgiani, Lieu,  
            Padilla, Torres, Vidak
          NO VOTE RECORDED:  Hernandez, Vacancy

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Alcoholic beverages:  wine labeling

           SOURCE  :     Author


           DIGEST  :    This bill updates an existing provision of the  
          Alcoholic Beverage Control (ABC) Act relative to false  
          representations of a wines appellation made on the producers  
          label, business material, and advertising matter to also include  
          representations made on "bottles" and in an "electronic" format.

           ANALYSIS  :    

          Existing law:

           1. 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,  
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             Monterey, and Marin) to 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.

           2. Requires that, when the word "Napa" (or any federally  
             recognized viticultural region within Napa County) appears on  
             a brand label, at least 75% of the grapes used to make that  
             wine must be from Napa County.  

           3. 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.  

           4. 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.

           5. 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% of the  
             grapes used to make the wine are from Sonoma County, as  
             specified. 

           6. Requires all wines produced or bottled within the current  
             Paso Robles appellation to be labeled with the designation  
             "Paso Robles."

           7. Requires all wines produced or bottled within the current  
             Lodi appellation to be labeled with the designation "Lodi."  

           8. 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/her consent, is guilty of a  

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             misdemeanor.  

          This bill updates an existing provision of the 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.
           
           Comments
           
          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 bill simply  
          includes representations made directly on "bottles" or in an  
          "electronic" format (e.g. e-mail or Internet Web sites).  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes


          MW:k  4/29/14   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  NONE RECEIVED

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