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 the department to issue various types of temporary retail licenses and regulates the labeling of alcoholic beverages. Existing law prohibits a retailer from dispensing any draught beer upon which the proper tap sign or draught beer sign is not displayed or the manufacturer or bottler of which has not complied with laws relating to labeling and containers.

This bill would except licenses issued for the retail sale of beer on a temporary basis for special events from the prohibition on the dispensing of mislabeled draught beer, as described above. The bill would apply this prohibition to any licensee. The bill would specify that a licensee is prohibited from identifying one product and selling another to a consumer.

Date of Hearing: April 23, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 1287

Author:(Fong) – As Introduced Ver:February 21, 2025

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

SUMMARY:

This bill modifies existing law requiring draught beer be dispensed from a tap with a proper sign.

Specifically, this bill:

1. Expands the existing tap signage law to apply to all Department of Alcoholic Beverage Control (ABC) licensees, not just retail licensees.
2. Prohibits a licensee from selling a product to a consumer that was identified as another product.
3. Exempts a license issued for the retail sale of beer on a temporary basis for special events from these identification requirements.

FISCAL EFFECT:

Minor and absorbable costs to ABC to enforce broader draught beer identification requirements applicable to all licensees.

This committee sees a wide array of bills that propose to modify the scope of alcohol laws. Generally, the majority of proposals do not generate significant new workload for ABC, but taken together, these proposals could lead to significant new costs and future budget requests. In this case, however, the proposed modifications will not likely impact licensee behavior.

COMMENTS:

1. Purpose. According to the author, this bill provides an exception for a temporary ABC license holder from specified display requirements applicable to traditional alcohol retailers. The author contends this change provides more flexibility for temporary beer sales at events, such as festivals, fairs, or fundraisers, while still maintaining consumer protection standards.
2. Background.

Draught Beer Signage. Existing law prohibits a retailer from dispensing draught beer when the proper tap or draught beer sign is not displayed, or the beer manufacturer has not complied with related labeling and container laws. This bill expands this prohibition to apply to all ABC licensees, not just retail licensees. Additionally, this bill explicitly prohibits a licensee from selling a product to a consumer that was identified as another product.

Daily Licenses. Existing law allows certain organizations, such as a charitable or religious organization, to apply for an ABC daily beer and wine (Type 34) or daily on-sale general (Type 37) license, which grants the licensee authorization to sell alcoholic beverages for on-premises consumption at a fundraising event. In some instances, ABC may require the applicant to obtain prior written approval from the local law enforcement agency. The fee is $50 per day for a Type 34 license and $75 per day for a Type 37 license. This bill exempts these daily licenses from the above-described draught beer misidentification prohibitions, although the author does not intend to exempt a daily license from the prohibition on selling a consumer a misidentified product.

1. Related Legislation. AB 744 (Michelle Rodriguez) exempts draught beer drawn at a premises operated under a beer manufacturer license from labeling requirements otherwise applicable to an on-sale retail licensee. AB 744 is pending hearing by this committee.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: April 2, 2025

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Blanca Rubio, Chair

ABPCA Bill Id:AB 1287 (

Author:Fong) – As Introduced Ver:February 21, 2025

SUBJECT: Beer: labeling: temporary licensing

SUMMARY: Provides an exception to the requirement that draught beer must be dispensed from a brand-identified tap or where a draught beer sign is displayed for licenses granted by the Department of Alcoholic Beverage Control (ABC) for the retail sale of beer on a temporary basis for special events. Specifically, this bill:

1) Exempts an ABC license issued for the temporary retail sale of beer for special events from the requirement to display a brand-identified tap or draught beer sign, as defined.

2) Specifies that a licensee is prohibited from identifying one product and selling another to a consumer.

3) Makes technical and clarifying changes.

EXISTING LAW:

1) Establishes the ABC and grants it exclusive authority to administer the provisions of the 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) Separates the alcoholic beverage industry into three component parts, or tiers, of the manufacturer (including breweries, wineries, and distilleries), wholesaler, and retailer (both on-sale and off-sale). This is referred to as the “Tied-house” law or “three-tier” system. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the “three-tier” system.

3) Defines “Beer” to mean any alcoholic beverage obtained by the fermentation of any infusion or decoction of barley, malt, hops, or any other similar product, or any combination thereof in water, and includes ale, porter, brown, stout, lager beer, small beer, and strong beer, but does not include sake, known as Japanese rice wine. Beer may be produced using the following materials as adjuncts in fermentation: honey, fruit, fruit juice, fruit concentrate, herbs, spices, and other food materials. Beer aged in an empty wooden barrel previously used to contain wine or distilled spirits shall be defined exclusively as “beer” and shall not be considered a dilution or mixture of any other alcoholic beverage. (Cal. Bus. & Prof. Code § 23006)

4) States that no retailer shall dispense any draught beer upon which the proper tap sign or draught beer sign is not displayed or the manufacturer or bottler of which has not complied with the Alcoholic Beverage Control Act (Act). The ABC may seize any draught beer displayed to the public in violation of the provision and may dispose of the beer, as defined. (Cal. Bus. & Prof. Code § 25206)

5) Requires any on-sale retail licensee that gives, sells, or otherwise dispenses draught beer to include specified information about the beer upon the faucet, spigot, or outlet from which the beer is drawn or in the place of service and consumption, as provided. (Cal. Bus. & Prof. Code § 25613)

6) Allows the manufacture of beer for personal or family use, and not for sale by a person over the age of 21. The aggregate amount of beer with respect to any household shall not exceed 200 gallons or 100 gallons if only one adult resides in such household. (Cal. Bus. & Prof. Code § 23356.2)

7) 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 (such as 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.

FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.

COMMENTS:

Purpose of the bill. According to the author’s office, this bill creates an exception for temporary licenses issued for special events, exempting these ABC licenses from the specified display requirements that apply to conventional alcohol retailers. This change provides more flexibility for temporary beer sales at events like festivals, fairs, or fundraisers while still maintaining consumer protection standards. The bill specifies that a licensee is prohibited from identifying one product and selling another to a consumer, which aims to prevent consumer fraud while safeguarding public health.

Background.

For businesses operating in California, ABC issues and renews licenses, ensuring that all sales and service of beer (draft or otherwise) comply with state law and regulations, including those on serving minors, hours of service, and responsible alcohol service practices. For businesses purchasing beer to serve on draught, California has rules governing how beer is distributed from breweries or distributors to the retail location. These include requirements for labeling and reporting of alcohol transactions. Draught beer taps are part of the ABC's broader oversight of alcoholic beverage service. California has specific regulations related to how draught beer taps must be installed and maintained, especially in terms of sanitation and cleanliness.

Draught beer, also referred to as draft beer or keg beer, is a type of beer that is served from a pressurized container or keg. This is in contrast to canned or bottled beer, which is kept under carbon dioxide pressure and sold in sealed containers. Draught beer is typically poured from a tap or spout, making it a popular choice for bars, restaurants, and other establishments. The process of serving draught beer involves several steps, including keeping the keg under carefully controlled conditions to maintain the optimal temperature, pressure, and carbonation levels. In short, draft beer is a pressurized beer that goes through a carbonation method that is not served as bottled beer or canned beer but is made in the same manner.

In California, the Act requires on-sale retail licensees who sell draught beer to, upon the faucet, spigot, or outlet from which the beer is drawn, attach and keep posted a clear and legible notice, placard, or marker which shall in the English language indicate and declare the name or brand adopted by the manufacturer of the beer. Existing law states that no retailer shall dispense any draught beer upon which the proper tap sign or draught beer sign is not displayed or the manufacturer or bottler of which has not complied with the Act. The ABC may seize any draught beer displayed to the public in violation of the Act and may dispose of the beer, as defined.

The Act generally requires a license/permit before alcohol can be served at a special event. Qualified non-profit organizations can apply for temporary beer licenses for events, requiring a completed application and payment, with the application submitted at least 10 days before the event. Qualified non-profit organizations, including charitable, civic, cultural, fraternal, religious, social, or amateur sports organizations, can apply for temporary beer licenses for special events. There is no standalone permit available for private businesses.

In recent years, amendments to the Act have created greater opportunities for small beer breweries to grow their market presence and increase sales without requiring a separate physical location at each event. These changes have enabled breweries to bring their products directly to consumers (special events), fostering stronger community connections and providing more flexibility to sell their product in unconventional venues.

It should be noted that the Legislature has enacted various exceptions to Tied-house laws, specifically in cases where public interests are protected and the original purpose of the law is maintained.

Prior legislation. AB 2174 (Aguiar-Curry), Chapter 308, Statutes of 2024. Authorized a licensed beer manufacturer to apply for, and the ABC to issue, a beer caterer’s permit for the sale of up to 124 gallons of beer manufactured by or for the licensee per catering event for consumption at specified locations and events, including, among others, conventions, sporting events, and trade exhibits.

AB 1940 (Villapudua), Chapter 218, Statutes of 2024. Allowed a wholesaler or manufacturer to accept the return of a seasonal brand of beer from a retail licensee if the beer is exchanged for a quantity of beer of similar quality, if the original manufacturer has ceased doing business.

SB 844 (Jones), Chapter 295, Statutes of 2023. Clarified that an alcohol licensee who transfers an alcoholic beverage license to a premise that is under construction must follow certain notification requirements unless the construction is taking place on the premise of the existing license. Additionally, this bill revises the definition of “season brand of beer” in the Act to also mean a brand of beer that is brewed by a manufacturer to recognize a season or holiday, as specified.

AB 2004 (Chesbro), Chapter 806, Statutes of 2014. Authorized a licensed beer manufacturer to apply to the ABC for a certified farmers' market beer sales permit, which allows the licensee to sell packaged beer at a farmers' market, including any specified area, under certain conditions. The bill also allows a beer manufacturer to sell beer and wine on their own premises during private events.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

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