(1)Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law authorizes a licensed winegrower to conduct winetastings of wine produced or bottled by, or produced and packaged for, the licensee, either on or off the winegrowers premises. The department provides for the issuance of a separate winegrowers license, commonly referred to as a duplicate license if a winegrower is operating under an alternating proprietorship, pursuant to which the winegrower is permitted to use the facilities of another winegrower in the course of producing wine. defines a licensed branch office with reference to certain winegrower and brandy manufacturer facilities for which a duplicate license has been issued. Existing law prohibits a winegrower or brandy manufacturer from selling wine or brandy to consumers, or engaging in winetasting activities, at more than one licensed branch premise. Existing law limits the effect of this prohibition in connection with other premises, as specified. Existing law generally provides that a violation of the Alcoholic Beverage Control Act is a misdemeanor.

This bill would require that a winegrower operating pursuant to an alternating proprietorship be allowed 2 tasting rooms under the duplicate winegrowers license that it has been issued, for purposes of exercising its right to conduct winetastings, as specified. revise the prohibition described above to allow a winegrower or brandy manufacturer to sell wine or brandy to consumers, or to engage in winetasting activities, at up to 2 licensed branch premises. By broadening the definition of a crime, this bill would impose a state-mandated local program.

(2)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(1)Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law authorizes a licensed winegrower to conduct winetastings of wine produced or bottled by, or produced and packaged for, the licensee, either on or off the winegrowers premises. The department provides for the issuance of a separate winegrowers license, commonly referred to as a duplicate license if a winegrower is operating under an alternating proprietorship, pursuant to which the winegrower is permitted to use the facilities of another winegrower in the course of producing wine. Existing law generally provides that a violation of the Alcoholic Beverage Control Act is a misdemeanor.

This bill would require that a winegrower operating pursuant to an alternating proprietorship be allowed 2 tasting rooms under the duplicate winegrowers license that it has been issued, for purposes of exercising its right to conduct winetastings, as specified. By broadening the definition of a crime, this bill would impose a state-mandated local program.

(2)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Date of Hearing: August 8, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

SBPCA Bill Id:SB 1430

Author:(Glazer) – As Amended Ver:April 17, 2018

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

SUMMARY:

This bill authorizes a licensed winegrower to operate two off-site tasting rooms under its winegrower license.

FISCAL EFFECT:

Annual special fund costs to the Department of Alcoholic Beverage Control (ABC) of $180,000 to process new applications for an additional duplicate license. (See Comment #3.)

COMMENTS:

1. Background and purpose. Under current law, a licensed winegrower is authorized to offer wine tasting for free or for charge at its own on-site tasting room. A winery may also obtain a duplicate license which allows for one off-site tasting room. Currently, approximately 1,500 winegrowers out of 5,888 statewide have such a duplicate license for a second, off-site tasting room.

While current law authorizes a winegrower to have two tasting rooms, some winegrowers operate under alternating proprietorship agreements that restrict their ability to have on-site tastings. These wineries enter into a private contract that allows two or more persons or entities to alternate the use of the same space and equipment to produce wine. However, this contract may limit participating winegrowers’ ability to fully exercise their licensed privileges.

According to supporters, SB 1430 will fix an inequity across wineries by allowing those operating under an alternating proprietorship agreement to have two tasting rooms like those wineries that do not operate under such agreements. According to Steve Kent Winery, these agreements restrict small wineries from opening a tasting room at the site of production because that site is on another winery’s facility.

1. Who benefits? This bill authorizes a winegrower to operate two off-site tasting rooms in addition to one on-site tasting room. While the stated intent of SB 1430 is to give winegrowers with alternating proprietorship agreements another off-site tasting room option, this bill goes above and beyond that stated intent. Instead, SB 1430 allows all winegrowers – even those not limited by a shared facility agreement – to obtain a second duplicate license. It is unclear why such a statutory change is warranted given that the original problem trying to be solved is a product of a private agreement between parties.
2. Cost assumptions. The costs associated with SB 1430 will depend on how many winegrowers apply for the additional duplicate license. Currently, only a share of all winegrowers obtain a duplicate license for one offsite tasting room, and it is unlikely that SB 1430 will dramatically increase the number of applications that ABC must process. Nevertheless, ABC will incur costs that will not be initially covered by the annual $98 fee for a duplicate license. If there are 1,000 new applications in the first 30 months, ABC will incur $181,000 in staffing costs annually for three years.

Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081

Date of Hearing: June 28, 2018

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Adam Gray, Chair

SBPCA Bill Id:SB 1430

Author:(Glazer) – As Amended Ver:April 17, 2018

SENATE VOTE: 39-0

SUBJECT: Winegrowers: tasting rooms

SUMMARY: Would increase the number of licensed branch premises (from 1 to 2) where a winegrower or brandy manufacturer may sell wine or brandy to consumers, or to engage in winetasting activities.

EXISTING LAW:

1. Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the Alcoholic Beverage Control Act (Act) in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages in this state and the collection of license fees.
2. Defines “licensed branch office” as any branch office or warehouse, or United States bonded wine cellar located away from the licensed winegrower’s or brandy manufacturer’s place of production, or manufacture, for which a duplicate license has been issued.
3. Prohibits a winegrower or brandy manufacturer from selling wine or brandy to consumers, or engaging in winetasting activities, at more than one licensed branch premise.
4. Authorizes a licensed winegrower to conduct specified activities, including authorizing a licensed winegrower to sell wine and brandy for consumption to consumers for on-premises consumption, as specified.
5. Authorizes an on-sale beer and wine public premises licensee and a licensed winegrower who exercises his or her license privileges at specified locations to allow a person who has purchased and partially consumed a bottle of wine to remove the partially consumed bottle from the premises upon departure.
6. Defines an "on-sale" license as authorizing the sale of all types of alcoholic beverages: namely, beer, wine and distilled spirits, for consumption on the premises (e.g. at a restaurant or bar). An "off-sale" license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
7. Defines "bona fide public eating place," as licensed premises that are maintained in good faith and used for the regular service of meals to patrons. The premises must have suitable kitchen facilities and supply an assortment of foods commonly ordered at various hours of the day.

FISCAL EFFECT: Unknown

COMMENTS:

Type 02 alcohol licenses. A Type-02 license authorizes the sale of wine and brandy to any person holding a license authorizing the sale of wine and brandy, and to consumers for consumption off the premises where sold. Type-02 licensees (wineries) are authorized to offer a tasting of wine for free or for a charge at their on-site tasting room. A licensed winegrower also has the ability to sell wine by the glass or bottle for consumption on or off the premise. All Type-02 licenses, which come up for renewal by June 30 of each year.

Wineries holding a Type-02 license may obtain what is known as a Duplicate Type 02 license, which allows a winery to have a tasting room away from the facilities where the wine is produced. Some wineries have tasting rooms both at the facility where they produce their wine and a tasting room at a different location. Either way, a winery may have no more than "one" off-site tasting room.

Some wineries operate under an "alternating proprietor" agreement, which allows two or more persons or entities to alternate on the use of the same space and equipment to produce wine. This bill would allow all Type-02 licensees to operate up to two off-site tasting rooms. Currently, there are 5,888 Type-02 licensees and about 1,500 of those have a duplicate license.

Typically, though not in every jurisdiction, a winery owner is required to obtain a local permit. These local permits can vary dramatically and not every tasting room is required to obtain a local permit. These requirements are all dependent on the location where the prospective tasting room is to be located and the local requirements of that jurisdiction.

Purpose of the bill. According to the author’s office, “when wineries operate under an alternating proprietorship agreement, their master Type-02 Winegrower license, and the accompanying rights, is used to cover the facility used for their production. Though allowed, in most instances the agreement prohibits the winery from having a tasting room at the shared facility. In practice, this means these wineries are required to obtain and use their Duplicate Type-02 licenses for an initial tasting room. As a result, most wineries that operate under an alternating proprietorship agreement are unable to have two tasting rooms as do other Type-02 licenses.”

This bill allows all Type-02 licensees to operate up to two off-site tasting rooms regardless of whether that winegrower is a bonded winery or a winery operating under an alternating proprietorship agreement.

In support. According to the Steven Kent Winery, “the alternating proprietorship agreement, in practically all cases, restricts the small winery from opening a tasting room at the site of production because that site is in another winery’s facility. Consequently, the small winery is only able, practically, to have one tasting room. This bill will help those many small wineries by allowing them to play on the same field as the larger wineries, increasing competition, and providing lovers of wine more wine options.”

Related legislation.

SB 1283 (Bradford, 2018) would authorize a brewpub-restaurant licensee to label, bottle, package, or refill any container with beer produced on their licensed premises and to sell that beer for consumption off the premises. Additionally, this bill makes various changes to the brewpub restaurant license to allow for greater enforcement by the Department of ABC. (Pending in Assembly G.O. Committee)

SB 1164 (Skinner, 2018) makes various changes to the craft distillers license including the requirement to attend a tasting before being able to purchase directly from the licensee, and increasing the maximum amount that a craft distillers license can produce per year. (Pending in the Assembly Appropriations Committee)

Prior legislation. AB 2488 (Levine, Chapter 98, Statutes of 2014). Authorized a licensed winegrower to conduct limited wine tastings for consumers at certified farmers’ markets under certain circumstances.

AB 933 (Skinner, Chapter 366, Statutes of 2013). Allows licensed distilled spirits manufacturers and licensed brandy manufacturers the privilege to conduct consumer tastings on their licensed premises and to charge for those tastings.

AB 1649 (Chesbro), Chapter 129, Statutes of 2010. Allows licensed winegrowers to produce spirits of wine (a byproduct of wine fermentation) under specified conditions without having to additionally obtain a distilled spirits manufacturer’s license.

AB 1470 (Evans) Chapter 535, Statutes of 2009. Authorized winegrowers to sell wine for consumption at a “branch office,” warehouse, or an off-site cellar, and removed the requirement that ABC issue a “duplicate” license “forthwith.” Also, authorized an on-sale beer and wine public premises licensee to allow a person who has purchased and partially consumed a bottle of wine to remove the partially consumed bottle from the premises upon departure.

AB 2004 (Evans) Chapter 127, Statutes of 2008. Amended several existing provisions of the Act related to the privileges of a winegrower’s license. The bill amended PC Section 23358 to expand a winegrower’s (Type-02) license privileges by allowing the sale of wine to the general public for consumption on the master (or production) premises. This change essentially allowed a winegrower to sell wine to consumers by the bottle or by the glass for consumption in approved, licensed areas.

REGISTERED SUPPORT / OPPOSITION:

Support

Family Winemakers of California

Opposition

None on file

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531

 THIRD READING  

Bill No: SB 1430

Author:

:

Vote:

SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 4/24/18

AYES: Dodd, Wilk, Bradford, Cannella, Gaines, Galgiani, Glazer, Hill, Hueso, Lara, Portantino, Vidak

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/25/18

AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener

SUBJECT:

SOURCE: Author

DIGEST: This bill authorizes a licensed winegrower or brandy manufacturer to operate two off-site tasting rooms under its winegrower license.

ANALYSIS:

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 alcoholic beverages in this state and the collection of license fees.
2. Defines a licensed branch office with reference to certain winegrower and brandy manufacturer facilities for which a duplicate license has been issued.
3. Prohibits a winegrower or brandy manufacturer from selling wine or brandy to consumers, or engaging in winetasting activities, at more than one licensed branch premise.

This bill authorizes a licensed winegrower or brandy manufacturer to operate two off-site tasting rooms under its winegrower license.

Background

Type 02 alcohol licenses. A Type 02 license authorizes the sale of wine and brandy to any person holding a license authorizing the sale of wine and brandy, and to consumers for consumption off the premises where sold. Wineries holding a Type 02 license may obtain what is known as a Duplicate Type 02 license, which allows a winery to have a tasting room away from the facilities where the wine is made. Some wineries have tasting rooms both at the facility where they produce their wine and a tasting room at a different location. Either way, a winery may have no more than one off-site tasting room.

Wineries are authorized to offer tasting of wine for free or for a charge at their tasting room. They also have the ability to sell wine by the glass or bottle for consumption on or off the premise. Typically, though not in every jurisdiction, a winery owner is required to obtain a local permit. These local permits can vary dramatically and not every tasting room is required to obtain a local permit. These requirements are all dependent on the location where the prospective tasting room is to be located and the local requirements of that jurisdiction.

Alternating proprietorship agreement. An alternating proprietorship agreement consists of two or more persons or entities alternating on the use of the same space and equipment to produce wine. In most cases, an existing winery, the host, agrees to rent space and equipment to a new tenant.

Such an agreement allows existing wineries to use extra space in their facilities and allows individuals who don’t have the necessary resources the opportunity to enter the wine business without having to fully invest in equipment – something that they can’t afford to do. Each winery, regardless of whether it’s the host or tenant must comply and qualify as a winery. Each winery is fully responsible for its own separate recordkeeping, tax payments, labeling, and reporting.

Comments

Purpose of the bill. According to the author’s office, “when wineries operate under an alternating proprietorship agreement, their master Type 02 Winegrower license, and the accompanying rights, is used to cover the facility used for their production. Though allowed, in most instances the agreement prohibits the winery from having a tasting room at the shared facility. In practice, this means these wineries are required to obtain and use their Duplicate Type 02 licenses for an initial tasting room. As a result, most wineries that operate under an alternating proprietorship agreement are unable to have two tasting rooms as do other Type 02 licenses.”

This bill allows all Type 02 licensees to operate up to two off-site tasting rooms regardless of whether that winegrower is a bonded winery or a winery operating under an alternating proprietorship agreement.

Related/Prior Legislation

SB 1164 (Skinner, 2018) makes various changes to the craft distillers license including the requirement to attend a tasting before being able to purchase directly from the licensee, and increasing the maximum amount that a craft distillers license can produce per year. (Pending in the Assembly Governmental Organization Committee)

SB 1283 (Bradford, 2018) authorizes a brewpub-restaurant licensee to label, bottle, package, or refill any container with beer produced on their licensed premises and to sell that beer for consumption off the premises. Additionally, the bill makes various changes to the brewpub restaurant license to allow for greater enforcement by the Department of ABC. (Pending on the Senate Floor)

AB 2488 (Levine, Chapter 98, Statutes of 2014) authorized a licensed winegrower to conduct limited wine tastings for consumers at certified farmers’ markets under certain circumstances.

AB 933 (Skinner, Chapter 366, Statutes of 2013) allowed licensed distilled spirits manufacturers and licensed brandy manufacturers the privilege to conduct consumer tastings on their licensed premises and to charge for those tastings.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee, significant costs in the hundreds of thousands of dollars for additional workload for the Department of ABC to process new duplicate licenses. The amount of additional workload would be dependent on the number of new duplicate license applications that would need to be processed. In addition, minor and absorbable cost to the Department of ABC for enforcement.

SUPPORT: (Verified 5/24/18)

Family Winemakers of California

Steven Kent Winery

OPPOSITION: (Verified 5/24/18)

None received

ARGUMENTS IN SUPPORT: According to the Steven Kent Winery, “the alternating proprietorship agreement, in practically all cases, restricts the small winery from opening a tasting room at the site of production because that site is in another winery’s facility. Consequently, the small winery is only able, practically, to have one tasting room. Senate Bill 1430 will help those many small wineries by allowing them to play on the same field as the larger wineries, increasing competition, and providing lovers of wine more wine options.”

Prepared by:

5/26/18 15:26:28

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

SB 1430 (Glazer) - Winegrowers: tasting rooms

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

SB 1430 would authorize a licensed winegrower or brandy manufacturer to operate two off-site tasting rooms under its winegrower license.

Fiscal Impact:

• Significant costs in the hundreds of thousands of dollars for additional workload for ABC to process new duplicate licenses. The amount of additional workload would be dependent on the number of new duplicate license applications that would need to be processed. (ABCF)
• Minor and absorbable costs to ABC for enforcement. (ABCF)

Background:

Existing law prohibits a winegrower or brandy manufacturer from selling wine or brandy to consumers or engaging in winetasting activities at more than one licensed branch premise. Type 02 licensees (wineries) are authorized to offer a tasting of wine for free or for a charge at their on-site tasting room. Wineries may also obtain a Duplicate Type 02 license which allows a winery to have one off-site tasting room. Some wineries operate under an alternating proprietorship agreement which allows two or more persons or entities to alternate on the use of the same space and equipment to produce wine. According to the author’s office, when wineries operate under an alternating proprietorship agreement, the agreement often prohibits the winery from having a tasting room at the shared facility. As a result, some wineries are required to obtain and use their Duplicate Type 02 license for an initial tasting room. This bill would allow all Type 02 licensees to operate up to two off-site tasting rooms. According to ABC, there are 5,888 Type 02 licensees.

Proposed Law:

This bill would authorize a licensed winegrower or brandy manufacturer to operate two off-site tasting rooms under its winegrower license.

Related Legislation:

SB 1283 (Bradford, 2018) would authorize a brewpub-restaurant licensee to label, bottle, package, or refill any container with beer produced on their licensed premises and to sell that beer for consumption off the premises. Additionally, this bill makes various changes to the brewpub restaurant license to allow for greater enforcement by the Department of ABC. This bill is pending in the Senate Appropriations Committee.

AB 2488 (Levine, Chapter 98, Statutes of 2014) authorized a licensed winegrower to conduct limited wine tastings for consumers at certified farmers’ markets under certain circumstances.

AB 933 (Skinner, Chapter 366, Statutes of 2013) allowed licensed distilled spirits manufacturers and licensed brandy manufacturers the privilege to conduct consumer tastings on their licensed premises and to charge for those tastings.

Staff Comments:

The number of licensees who apply for additional duplicate licenses as a result of this bill can vary widely. Currently, there are a total of 5,888 winegrower licensees and about 1,500 of those have a duplicate license. If all winegrowers obtain two duplicate licenses, (including those who currently have just one duplicate license and those who have no duplicate license) ABC would have to process an additional 10,276 applications. Considering the small proportion of total winegrowers who currently have a duplicate license, it is unlikely that all 5,888 will apply for two duplicate licenses. However, if just a small proportion of winegrower licensees with a current duplicate license apply for an additional duplicate license and a proportion of winegrower licensees without a duplicate license also apply for duplicate license(s), processing the applications would require additional workload of ABC.

-- END --

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Bill Dodd

Chair

2017 - 2018 Regular

Bill No: SB Hearing Date: 4/24/2018

SUBJECT:

DIGEST: This bill authorizes a licensed winegrower or brandy manufacturer to operate two off-site tasting rooms under its existing winegrower license.

ANALYSIS:

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 alcoholic beverages in this state and the collection of license fees.
2. Defines a licensed branch office with reference to certain winegrower and brandy manufacturer facilities for which a duplicate license has been issued.
3. Prohibits a winegrower or brandy manufacturer from selling wine or brandy to consumers, or engaging in winetasting activities, at more than one licensed branch premise.

This bill authorizes a licensed winegrower or brandy manufacturer to operate two off-site tasting rooms under its existing winegrower license.

Background

Purpose of the bill. According to the author’s office, “when wineries operate under an alternating proprietorship agreement, their master Type 02 Winegrower license, and the accompanying rights, is used to cover the facility used for their production. Though allowed, in most instances the agreement prohibits the winery from having a tasting room at the shared facility. In practice, this means these wineries are required to obtain and use their Duplicate Type 02 licenses for an initial tasting room. As a result, most wineries that operate under an alternating proprietorship agreement are unable to have two tasting rooms as do other Type 02 licenses.”

This bill would allow all Type 02 licensees to operate up to two off-site tasting rooms regardless of whether that winegrower is a bonded winery or a winery operating under an alternating proprietorship agreement.

Type 02 alcohol licenses. A Type 02 license authorizes the sale of wine and brandy to any person holding a license authorizing the sale of wine and brandy, and to consumers for consumption off the premises where sold. Wineries holding a Type 02 license may obtain what is known as a Duplicate Type 02 license, which allows a winery to have a tasting room away from the facilities where the wine is made. Some wineries have tasting rooms both at the facility where they produce their wine and a tasting room at a different location. Either way, a winery may have no more than one off-site tasting room.

Wineries are authorized to offer tasting of wine for free or for a charge at their tasting room. They also have the ability to sell wine by the glass or bottle for consumption on or off the premise. Typically, though not in every jurisdiction, a winery owner is required to obtain a local permit. These local permits can vary dramatically and not every tasting room is required to obtain a local permit. These requirements are all dependent on the location where the prospective tasting room is to be located and the local requirements of that jurisdiction.

Alternating proprietorship agreement. An alternating proprietorship agreement consists of two or more persons or entities alternating on the use of the same space and equipment to produce wine. In most cases, an existing winery, the host, agrees to rent space and equipment to a new tenant.

Such an agreement allows existing wineries to use extra space in their facilities and allows individuals who don’t have the necessary resources the opportunity to enter the wine business without having to fully invest in equipment – something that they can’t afford to do. Each winery, regardless of whether it’s the host or tenant must comply and qualify as a winery. Each winery is fully responsible for its own separate recordkeeping, tax payments, labeling, and reporting.

Prior/Related Legislation

SB 1164 (Skinner, 2018) would make various changes to the craft distillers license including the requirement to attend a tasting before being able to purchase directly from the licensee, increasing the maximum amount that a craft distillers license can produce per year, and allowing the licensee to conduct licensee-controlled events, as defined. (Pending in the Senate Governmental Organization Committee)

SB 1283 (Bradford, 2018) would authorize a brewpub-restaurant licensee to label, bottle, package, or refill any container with beer produced on their licensed premises and to sell that beer for consumption off the premises. Additionally, the bill makes various changes to the brewpub restaurant license to allow for greater enforcement by the Department of ABC.

AB 2488 (Levine, Chapter 98, Statutes of 2014) authorized a licensed winegrower to conduct limited wine tastings for consumers at certified farmers’ markets under certain circumstances.

AB 933 (Skinner, Chapter 366, Statutes of 2013) allowed licensed distilled spirits manufacturers and licensed brandy manufacturers the privilege to conduct consumer tastings on their licensed premises and to charge for those tastings.

AB 636 (Hall, Chapter 329, Statutes of 2013) authorized, under specified conditions and until January 1, 2016, the appearance of a person for the purpose of providing autographs at an instructional event for consumers that a winegrower, California winegrower’s agent, importer, or other specified parties conduct, or participate in, that is held at a retailer’s premises featuring wines produced by or for the winegrower or, imported by the wine importer.

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

SUPPORT:

Steven Kent Winery

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: According to the Steven Kent Winery, “the alternating proprietorship agreement, in practically all cases, restricts the small winery from opening a tasting room at the site of production because that site is in another winery’s facility. Consequently, the small winery is only able, practically, to have one tasting room. Senate Bill 1430 will help those many small wineries by allowing them to play on the same field as the larger wineries, increasing competition, and providing lovers of wine more wine options.”