Date of Hearing: August 14, 2019

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

SBPCA Bill Id:SB 264

Author:(Glazer) – As Introduced Ver:February 12, 2019

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 costs in excess of $180,000 SF for the Department of Alcoholic Beverage Control (ABC) to process new license applications. These costs reflect a conservative assumption that 1,000 winegrowers will seek an additional duplicate license. If all 5,888 licensed winegrowers across California max out their available duplicate license privileges, then costs for ABC would exceed $1.8 million each year.

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 for one off-site tasting room. Currently, approximately 1,500 winegrowers statewide have such a duplicate license for a second, off-site tasting room.

According to supporters, SB 264 will benefit California wineries by allowing them additional opportunities to open additional tasting rooms

1. Last year’s effort. This bill authorizes a winegrower to operate two off-site tasting rooms in addition to one on-site tasting room. Last year, this committee heard, and held on its Suspense File, SB 1430 (Glazer), of the 2017-18 Legislative Session, which was identical to this bill. The stated intent of SB 1430 was to address the specific situation when a winegrower operates under an alternating proprietorship agreement that restricts their ability to have on-site tastings, which in effect allows this winegrower only one tasting room. The proposed solution was to grant every winegrower an additional duplicate license, including those winegrowers not participating in an alternating proprietorship agreement. As this committee noted in its analysis of SB 1430, the proposed solution went above and beyond the scope of the identified problem. Given that only a modest share of all winegrowers (1,500 out of 5,888) have maxed out their current licensing privileges, it was unclear there was significant demand of another duplicate license.
2. Budget actions. SB 82 (Committee on Budget and Fiscal Review), Chapter 29, Statutes of 2019, modified the state’s license fee structure to help address ABC’s ongoing structural deficit. As the Assembly Budget Committee notes, ABC’s staffing has remained flat for the last 60 years despite significant growth in licenses and the industry. In 1955, 445 ABC employees regulated 44,925 licenses, while today just 459 employees regulate 92,277 licenses. SB 82 included a package of fee increases that will go into effect on October 1, 2019.
3. Expanding alcohol and ABC workload. Each year this committee sees a wide array of bills that expand access to a specific type of alcoholic beverage license. Generally, these proposals are narrow in scope (such as applying to a single county or a specific type of license) and represent a minor increase in the overall number of licenses statewide. However, while each of these bills may not generate new workload for ABC, taken together they can lead to significant new costs and future budget requests.

Moreover, a number of bills pending in this committee are much more expansive proposals that will lead to a sizable increase in the number of licenses ABC must oversee. In addition to this bill, SB 352 (Dodd) allows counties that have reached the cap on on-sale license to receive 10 new licenses each year the cap is reached. ABC estimates this will lead to at least 1,250 new licenses over the next five years. SB 58 (Wiener) allows for a special additional hours license to grant on-sale licenses in certain cities the ability to serve alcohol until 4:00 am. ABC estimates this will increase the number of licenses by at least 300 each year, and the new proposed license will create new enforcement challenges.

The above proposals will generate considerable new workload for ABC. These bills will generate some upfront revenue through license fees, but typically license revenues will be high in initial years and subside significantly in later years, even as enforcement costs remain.

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

Date of Hearing: June 26, 2019

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Adam Gray, Chair

SBPCA Bill Id:SB 264

Author:(Glazer) – As Introduced Ver:February 12, 2019

SENATE VOTE: 38-0

SUBJECT: Wine growers: tasting rooms

SUMMARY: This bill would authorize a licensed winegrower or brandy manufacturer to operate two off-site tasting rooms (from 1 to 2) under its winegrower license.

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:

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 licensees.

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.

Background:

ABC license (Winegrower/Winery - Type 02). 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 premises. 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. Currently, there are a total of 5,888 winegrower licensees and about 1,500 of those have a duplicate license.

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.

In support. According to the Family Winemakers of California, “currently, a winegrower is prohibited from selling wine or engaging in winetasting activities at more than one licensed branch premise. Expanding this prohibition to allow for an additional offsite tasting room will benefit winemakers looking to increase the exposure of their product, without having to rely on customers visiting their production site. Further, giving consumers an alternative location to taste wine provided added convenience making it a sensible model in its totality.”

In opposition. Alcohol Justice states that, “expanding the number of locations where licenses may be issued, no matter how minimal, will increase availability and therefore negatively impact public health.”

Prior legislation. SB 1430 (Glazer, 2018), identical to this bill, would have authorized a licensed winegrower or brandy manufacturer to operate two off-site tasting rooms under its winegrower license. It was held on the Assembly Appropriations Suspense File.

SB 1164 (Skinner), Chapter 695, Statutes of 2018). Made various changes to the craft distiller’s license, including eliminating the requirement that a person must attend a tasting before being able to purchase prepackaged containers of the licensee’s spirits directly from the craft distiller and increasing the maximum amount of distilled spirits that a craft distiller is permitted to manufacture from 100,000 gallons to 150,000 gallons.

SB 1283 (Bradford), Chapter 736, Statutes of 2018. Authorized 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 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.

REGISTERED SUPPORT / OPPOSITION:

Support

Family Winemakers of California

Southwest California Legislative Council

Wine Institute

Opposition

Alcohol Justice

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

 THIRD READING  

Bill No: SB 264

Author: Glazer (D), et al.

Introduced: 2/12/19

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 15-0, 3/26/19

AYES: Dodd, Wilk, Allen, Archuleta, Borgeas, Bradford, Chang, Galgiani, Glazer, Hill, Hueso, Jones, Portantino, Rubio, Wiener

NO VOTE RECORDED: Nielsen

SENATE APPROPRIATIONS COMMITTEE: 6-0, 5/16/19

AYES: Portantino, Bates, Bradford, Hill, Jones, Wieckowski

SUBJECT: Wine growers: tasting rooms

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 premises.
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. 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.

This bill authorizes a licensed winegrower or brandy manufacturer to operate two off-site tasting rooms under its existing 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 premises. 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. There are just below 6,000 Type 02 licensees and about 1,500 of those have a duplicate license.

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 licensees.

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 1430 (Glazer, 2018) would have authorized a licensed winegrower or brandy manufacturer to operate two off-site tasting rooms under its winegrower license. (Held on the Assembly Appropriations Suspense File)

SB 1164 (Skinner, Chapter 695, Statutes of 2018) made various changes to the craft distiller’s license, including eliminating the requirement that a person must attend a tasting before being able to purchase prepackaged containers of the licensee’s spirits directly from the craft distiller and increasing the maximum amount of distilled spirits that a craft distiller is permitted to manufacture from 100,000 gallons to 150,000 gallons.

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

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 costs to the Department of ABC for enforcement.

Finally, unknown revenue from renewal fees which will offset some of the costs of issuing licenses. However, the $98 renewal fee per license is not anticipated to fully recover labor or enforcement costs.

SUPPORT: (Verified 5/16/19)

Family Winemakers of California

Southwest California Legislative Council

Wine Institute

OPPOSITION: (Verified 5/16/19)

Alcohol Justice

ARGUMENTS IN SUPPORT: According to the Family Winemakers of California, “currently, a winegrower is prohibited from selling wine or engaging in winetasting activities at more than one licensed branch premise. Expanding this prohibition to allow for an additional offsite tasting room will benefit winemakers looking to increase the exposure of their product, without having to rely on customers visiting their production site. Further, giving consumers an alternative location to taste wine provided added convenience making it a sensible model in its totality.”

ARGUMENTS IN OPPOSITION: Alcohol Justice states that, “expanding the number of locations where licenses may be issued, no matter how minimal, will increase availability and therefore negatively impact public health.”

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

5/18/19 12:53:14

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

SB 264 (Glazer) - Wine growers: tasting rooms

Bill Summary:

SB 264 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 the Department of Alcoholic Beverage Control (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)
• Unknown revenue from renewal fees which will offset some of the costs of issuing licenses. However, the $98 renewal fee per license is not anticipated to fully recover labor or enforcement costs. (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 1430 (Glazer, 2018), identical to this bill, would have authorized a licensed winegrower or brandy manufacturer to operate two off-site tasting rooms under its winegrower license. It was held on the Assembly Appropriations Suspense File.

SB 1164 (Skinner, Chapter 695, Statutes of 2018) made various changes to the craft distiller’s license, including eliminating the requirement that a person must attend a tasting before being able to purchase prepackaged containers of the licensee’s spirits directly from the craft distiller and increasing the maximum amount of distilled spirits that a craft distiller is permitted to manufacture from 100,000 gallons to 150,000 gallons.

SB 1283 (Bradford, Chapter 736, Statutes of 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, this bill makes various changes to the brewpub restaurant license to allow for greater enforcement by 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.

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. If all licensees were to apply for a duplicate license, ABC would incur costs in the low millions of dollars.

However, 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. Assuming that at least 1,000 winegrowers would choose to apply for an additional duplicate license and assuming a steady pace of applications through the first 30 months of the bill being enacted, this bill would cost ABC approximately $181,000 per year for additional personnel for licensing work.

-- END --

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Bill Dodd

Chair

2019 - 2020 Regular

Bill No: SB 264 Hearing Date: 3/26/2019

SUBJECT: Wine growers: tasting rooms

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 premises.
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. 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.

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 licensees.

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.

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 premises. 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. There are just below 6,000 Type 02 licensees and about 1,500 of those have a duplicate license.

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 1430 (Glazer, 2018) would have authorized a licensed winegrower or brandy manufacturer to operate two off-site tasting rooms under its winegrower license. (Held on the Assembly Appropriations Suspense File)

SB 1164 (Skinner, Chapter 695, Statutes of 2018 2018) made makes various changes to the craft distiller’s license, including eliminating the requirement that a person must attend a tasting before being able to purchase prepackaged containers of the licensee’s spirits directly from the craft distiller and increasing the maximum amount of distilled spirits that a craft distiller is permitted to manufacture from 100,000 gallons to 150,000 gallons.

SB 1283 (Bradford, Chapter 736, Statutes of 2018) authorized 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 made 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:

Family Winemakers of California

Wine Institute

OPPOSITION:

Alcohol Justice

ARGUMENTS IN SUPPORT: According to the Family Winemakers of California, “currently, a winegrower is prohibited from selling wine or engaging in winetasting activities at more than one licensed branch premise. Expanding this prohibition to allow for an additional offsite tasting room will benefit winemakers looking to increase the exposure of their product, without having to rely on customers visiting their production site. Further, giving consumers an alternative location to taste wine provided added convenience making it a sensible model in its totality.”

ARGUMENTS IN OPPOSITION: Alcohol Justice states that, “expanding the number of locations where licenses may be issued, no matter how minimal, will increase availability and therefore negatively impact public health.”