Existing federal law, the Indian Gaming Regulatory Act of 1988, provides for the negotiation and execution of tribal-state gaming compacts for the purpose of authorizing certain types of gaming on Indian lands within a state. The California Constitution authorizes the Governor to negotiate and conclude those compacts, subject to ratification by the Legislature. Existing law expressly ratifies a number of tribal-state gaming compacts, and amendments to tribal-state gaming compacts, between the State of California and specified Indian tribes.

The California Environmental Quality Act (CEQA) requires a lead agency to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project, as defined, that it proposes to carry out or approve that may have a significant effect on the environment, as defined, or to adopt a negative declaration if it finds that the project will not have that effect.

This bill would ratify the amendment to the tribal-state gaming compact entered into between the State of California and the Picayune Rancheria of Chukchansi Indians of California. The bill would provide that, in deference to tribal sovereignty, certain actions related to this amended compact are not projects for the purposes of CEQA.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing federal law, the Indian Gaming Regulatory Act of 1988, provides for the negotiation and execution of tribal-state gaming compacts for the purpose of authorizing certain types of gaming on Indian lands within a state. The California Constitution authorizes the Governor to negotiate and conclude those compacts, subject to ratification by the Legislature. Existing law expressly ratifies a number of tribal-state gaming compacts, and amendments to tribal-state gaming compacts, between the State of California and specified Indian tribes.

The California Environmental Quality Act (CEQA) requires a lead agency to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project, as defined, that it proposes to carry out or approve that may have a significant effect on the environment, as defined, or to adopt a negative declaration if it finds that the project will not have that effect.

This bill would ratify the amendment to the tribal-state gaming compact entered into between the State of California and the Picayune Rancheria of Chukchansi Indians of California. The bill would provide that, in deference to tribal sovereignty, certain actions related to this amended compact are not projects for the purposes of CEQA.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law defines beer for purposes of the Alcoholic Beverage Control Act as 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, as specified.

This bill would revise the definition of beer for purposes of the act to provide that beer may be produced using other grain and to specify that fermentation occurs in drinkable water.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1527

Author:(Soria)

As Amended Ver:June 23, 2025

2/3 vote. Urgency

SUMMARY

Would ratify the Fourth Amendment to the Tribal-State Gaming Compact entered into between the State of California (State) and the Picayune Rancheria of Chukchansi Indians of California (Tribe), executed on June 4, 2025, which would further extend its expiration date to December 31, 2026.

Senate Amendments

1) Gut and amend the previous Assembly version of the bill.

2) Ratify the Fourth Amendment to the Tribal-State Gaming Compact entered into between the State and the Tribe, executed on June 4, 2025 in order to extend the term that the Tribe may continue to operate Class III gaming on its Indian lands.

3) Provide that, in deference to tribal sovereignty, certain actions are not deemed projects for purposes of the California Environmental Quality Act (CEQA); and, stipulate, except as expressly provided, that none of the provisions shall be construed to exempt a city, county, or city and county, or the Department of Transportation, or any state agency or local jurisdiction, from CEQA requirements.

4) Add an urgency clause.

EXISTING LAW:

1. Provides, under the Indian Gaming Regulatory Act (IGRA), for the negotiation and conclusion of compacts between federally recognized Indian tribes and the State for the purpose of conducting Class III gaming activities on Indian lands within a State as a means of promoting tribal economic development, self-sufficiency, and strong tribal governments.
2. Authorizes expressly a number of tribal-state gaming compacts between the State of California and specified Indian tribes.
3. Authorizes the conduct of Class III gaming activities to the extent such activities are permitted by state law, a gaming compact has been concluded by a federally recognized tribe and the State, and the compact has been approved by the Secretary of the Interior.
4. Limits the operation of Class III gaming activities to Indian lands acquired on or before October 17, 1988. Provides exceptions to conduct gaming activities on Indian lands acquired after October 17, 1988.
5. Defines Indian lands to mean all lands within the limits of any Indian reservation, and any lands title to which is either held in trust by the United States (U.S.) for the benefit of any Indian tribe, or individual, or held by any Indian tribe or individual subject to restriction by the U.S. against alienation and over which an Indian tribe exercises governmental power.
6. Requires the State to negotiate to conclude a compact in good faith with an Indian tribe having jurisdiction over the Indian lands upon which the Class III gaming activity is to be conducted. Provides the U.S. district courts with jurisdiction over any cause of action initiated by a tribal government alleging that the State failed to negotiate in good faith to conclude a compact. Prescribes the remedy, mediation supervised by the courts, if it is found that the State failed to negotiate in good faith to conclude a compact.
7. Authorizes the Governor, under the California Constitution, to negotiate and conclude compacts, subject to ratification by the Legislature.

COMMENTS

Note: On September 2, 2025, the Assembly Governmental Organization Committee held informational hearing on the content of the Fourth Amendment to the tribal-state gaming compact between the State of California and the Picayune Rancheria of Chukchansi Indians of California, executed on June 4, 2025, entered into in accordance with the federal Indian Gaming Regulatory Act of 1988.

Brief History and Background.

On June 4, 2025, the State of California agreed to a one-year extension with the Picayune Rancheria of Chukchansi Indians of California (Tribe), which is still operating under their original 1999 Tribal-State Gaming Compact, to allow the Tribe to operate under the terms of their 1999 Compact until December 31, 2026. The preamble to the Compact notes that this Fourth Amendment is not intended by the Tribe or the State to alter any terms of the 1999 Compact, except to extend the termination date and allow the Tribe to continue operating Class III gaming on its Indian lands.

The Tribe is a federally recognized Indian tribe established by executive order in 1988 by the United States Government. The Picayune Rancheria, founded in 1912 and located in Coarsegold, California, covers 160 acres in Madera County and serves as the tribal land.

The State of California in 1999 and 2000 entered into over 60 tribal-state gaming compacts with tribes in California pursuant to the Indian Gaming Regulatory Act (IGRA). These compacts are collectively referred to as the 1999 Compacts. The 1999 Compacts were for an initial 20-year term, with a termination date of December 31, 2020. However, the 1999 Compacts included an automatic 18-month extension to June 30, 2022. Three years ago, the State of California agreed to an additional 18-month compact extension with approximately 26 tribes that allowed them to operate under the terms of their 1999 compact until December 31, 2023. Two years ago, the State of California agreed once again to a one-year compact extension with 22 tribes who are still operating under their original 1999 compacts to allow them to operate under the terms of their 1999 compacts until December 31, 2024. Last year, the State of California agreed to a one-year extension of gaming compacts with three tribes, including the Picayune Rancheria of Chukchansi Indians. The extensions allow these tribes to continue operating under the terms of their original 1999 compacts through December 31, 2025. Although most tribes with 1999 compacts have since negotiated new agreements, a small number continue to operate under the original terms.

The 1999 Compact allows, but does not require, the State and the Tribe to amend the term of the Tribe′s 1999 Compact by mutual and written agreement. To be effective, an amendment solely to extend the term of a 1999 Compact requires ratification by the California Legislature, but it does not require approval by the Secretary pursuant to 25 Code of Federal Regulations section 293.5.

The Amendment to extend the 1999 Compacts until December 31, 2026 would not preclude the State and the 1999 Compact tribes from agreeing to further extensions should both agree it is appropriate.

According to the Compact′s preamble, the Tribe desires to offer for play in its existing gaming facilities off-track satellite wagering on various horse racing. This Fourth Amendment allows the Tribe and the State to negotiate an agreement governing the conduct of such wagering at the Tribe′s gaming facility. (Appendix C)

Today, the Tribe operates the Chukchansi Gold Resort & Casino in Coarsegold, California. According to its official website, guests are invited to enjoy ″the dynamic atmosphere of our Firehouse Lounge and directly in front of California Market Buffet, where high-energy gaming awaits in a smoke-free haven.″ The resort features a 73,000-square-foot gaming floor, featuring 2,000 slot machines and a selection of 40 table games. For added convenience, 20 electric vehicle charging stations are located on the first and fourth levels of the parking garage.

Additional Background Information.

Indian Gaming Regulatory Act. In 1988, Congress enacted the IGRA to provide a statutory basis for the operation and regulation of gaming on Indian lands. IGRA provides that an Indian tribe may conduct gaming activity on Indian lands if the activity ″is not specifically prohibited by federal law and is conducted within a State which does not prohibit such gaming activity.″ IGRA further provided for general regulatory oversight at the federal level and created the National Indian Gaming Commission (NIGC).

IGRA distinguishes between three classes of gaming (Class I, Class II, and Class III) and provides for different forms of regulation for each class. Class I gaming includes ″social games″ for minor prizes or ″traditional forms of Indian gaming.″ Class II gaming is defined to include bingo and card games that are explicitly authorized by the laws of the state, or that are not explicitly prohibited by the laws of the state and are played at any location in the State, so long as the card games are played in conformity with those laws and regulations. All other games are Class III, except for certain social or traditional forms of gaming. Class III games include, but are not limited to the following: baccarat, blackjack, slot machines, and electronic or electromechanical facsimiles of any game of chance. Class III gaming may only be conducted under terms of a compact negotiated between an Indian tribe and a State.

IGRA was enacted against a legal background in which Indian tribes and individuals generally are exempt from state taxation within their own territory. IGRA provides that with the exception of assessments permitted under the statute, to defray the State′s costs of regulating gaming activity, IGRA shall not be interpreted as conferring upon a State authority to impose any tax, fee, charge, or other assessment upon an Indian tribe to engage in Class III activity. Nor may a State refuse to enter into negotiations based on the lack of authority to impose such a tax, fee, charge, or other assessment.

When a tribe requests negotiations for a Class III compact, IGRA requires the State to negotiate with the Indian tribe in good faith. IGRA provides a comprehensive process to prevent an impasse in compact negotiations, which is triggered when a tribe files suit alleging that the State has refused to negotiate or has failed to negotiate in good faith.

Before 2000, the California Constitution prohibited Class III gaming. In 2000, California voters approved Proposition 1A, which had been proposed by the Governor and passed by the Legislature. Proposition 1A amended the California Constitution to permit the State to negotiate compacts with federally recognized Indian tribes for certain Class III gaming activities. Because non-Indian parties were still forbidden from operating gaming facilities, Proposition 1A granted Indian tribes a ″constitutionally protected monopoly on most types of Class III games in California.″

Compact Ratification. The State Constitution, as amended by Proposition 1A of March 2000, permits Indian tribes to conduct and operate slot machines, lottery games, and banked and percentage card games on Indian land. These gambling activities shall only occur if:

1. The Governor and an Indian tribe reach agreement on a compact;
2. The Legislature approves the compact, and,
3. The federal government approves the compact.

The Governor is the designated State officer responsible for negotiating and executing, on behalf of the State, Tribal-State gaming compacts with federally recognized Indian tribes located within the State of California. Following completion of negotiations, the Governor shall submit a copy of any executed Tribal-State compact to both houses of the Legislature for ratification and shall submit a copy of the executed compact to the Secretary of State. The Compact provides that it shall not be presented to the Legislature for a ratification vote until the Tribe has provided the written proof and will provide written proof to the Governor the tribal governing body has ratified it.

According to the Author

The Compact′s preamble notes, ″This Fourth Amendment is not intended by the Tribe and the State to change any terms of the 1999 Compact except for extending the termination date, as provided.″

Arguments in Support

The Compact′s preamble states that nothing in this Fourth Amendment, the 1999 Compact, or the First, Second, or Third Extensions shall preclude the State and the Tribe from entering into another amendment to further extend the date in section 11.2.1, subdivision (a) of the 1999 Compact.″

Arguments in Opposition

None received

FISCAL COMMENTS

Unknown

VOTES:

ASM GOVERNMENTAL ORGANIZATION: 22-0-0

YES: Blanca Rubio, Davies, Alvarez, Berman, Bryan, Carrillo, Dixon, Fong, Gabriel, Gipson, Macedo, McKinnor, Nguyen, Pacheco, Ramos, Michelle Rodriguez, Sanchez, Solache, Soria, Ta, Valencia, Wallis

ASSEMBLY FLOOR: 76-0-3

YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Gallagher, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, Muratsuchi, Nguyen, Ortega, Pacheco, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

ABS, ABST OR NV: Chen, McKinnor, Papan

UPDATED

VERSION: June 23, 2025

CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0001448

 THIRD READING  

Bill No: AB 1527

Author: Soria (D), et al.

Amended: 6/23/25 in Senate

Vote: 27 - Urgency

PRIOR VOTE NOT RELEVANT

NOTE: On August 26, 2025, the Senate Governmental Organization Committee held an informational hearing on the fourth amendment between the State of California and the Picayune Rancheria of Chukchansi Indians of California, executed on June 4, 2025.

SUBJECT: Tribal gaming: compact ratification

SOURCE: Author

DIGEST:

This bill ratifies the amendment to the tribal-state gaming compact entered into between the State of California and the Picayune Rancheria of Chukchansi Indians of California (Tribe), executed on June 4, 2025.

ANALYSIS:

Existing law:

1. Provides, under the Indian Gaming Regulatory Act (IGRA), for the negotiation and conclusion of compacts between federally recognized Indian tribes and the State for the purpose of conducting Class III gaming activities on Indian lands within a State as a means of promoting tribal economic development, self-sufficiency, and strong tribal governments.
2. Authorizes the conduct of Class III gaming activities to the extent such activities are permitted by state law, a gaming compact has been concluded by a federally recognized tribe and the State, and the compact has been approved by the Secretary of the Interior.
3. Limits the operation of Class III gaming activities to Indian lands acquired on or before October 17, 1988. Provides, for certain exceptions to conduct gaming activities on Indian lands acquired after October 17, 1988.
4. Requires the State to negotiate to conclude a compact in good faith with an Indian tribe having jurisdiction over the Indian lands upon which the Class III gaming activity is to be conducted. Provides the U.S. district courts with jurisdiction over any cause of action initiated by a tribal government alleging that the State failed to negotiate in good faith to conclude a compact. Prescribes the remedy, mediation supervised by the courts, if it is found that the State failed to negotiate in good faith to conclude a compact.
5. Authorizes the Governor, under the California Constitution, to negotiate and conclude compacts, subject to ratification by the Legislature.

This bill:

1. Ratifies the amendment to the tribal-state gaming compact entered into between the State of California and the Tribe, executed on June 4, 2025.
2. Provides that, in deference to tribal sovereignty, certain actions are not deemed projects for purposes of the California Environmental Quality Act (CEQA); and, stipulate, except as expressly provided, that none of the provisions shall be construed to exempt a city, county, or city and county, or the Department of Transportation, or any state agency or local jurisdiction, from CEQA requirements.
3. Contains an urgency clause.

Background

On June 4, 2025, the State of California agreed to a one-year extension with the Tribe which is still operating under their original 1999 compact, to allow the Tribe to operate under the terms of their 1999 compact until December 31, 2026.

The State of California in 1999 and 2000 entered into over 60 tribal-state gaming compacts with tribes in California pursuant to IGRA. These compacts are collectively referred to as the 1999 Compacts. The 1999 Compacts were for an initial 20-year term, with a termination date of December 31, 2020. However, the 1999 Compacts included an automatic 18-month extension to June 30, 2022. Three years ago, the State of California agreed to an additional 18-month compact extension with approximately 26 tribes that allowed them to operate under the terms of their 1999 compact until December 31, 2023. Two years ago, the State of California agreed once again to a one-year compact extension with 22 tribes who are still operating under their original 1999 compacts to allow them to operate under the terms of their 1999 compacts until December 31, 2024. Last year, the State of California once again agreed to a one-year compact extension with three tribes, including the Picayune Rancheria of Chukchansi Indians of California, which allowed these tribes to operate under the terms of their 1999 compacts until December 31, 2025. A majority of the tribes with 1999 Compacts now have new compacts, but there are a handful of tribes that are still operating under the 1999 Compacts.

The 1999 Compacts allow, but do not require, the State and a tribe to amend the term of the Tribe’s 1999 Compact by mutual and written agreement. To be effective, an amendment solely to extend the term of a 1999 Compact requires ratification by the California Legislature, but it does not require approval by the Secretary pursuant to 25 Code of Federal Regulations section 293.5. The amendment to extend the 1999 Compacts until December 31, 2026 would not preclude the State and the 1999 Compact tribes from agreeing to further extensions should both agree it is appropriate.

The Picayune Rancheria of Chukchansi Indians of California are a federally recognized Indian tribe established by executive order in 1988 by the United States Government. The Picayune Rancheria, founded in 1912 and located in Coarsegold, California, covers 160 acres in Madera County and serves as the tribal land.

Today the Tribe operates the Chukchansi Gold Resort and Casino in Coarsegold, California. According to the casino’s internet website, patrons can immerse themselves “in the dynamic atmosphere of our Firehouse Lounge and directly in front of California Market Buffet, where high-energy gaming awaits in a smoke-free haven.” The casino boasts a 73,000 square-foot gaming floor and features 2,000 slot machines as well as a selection of 40 table games. Additionally, the facilities include 20 electric vehicle charging stations on the first and fourth floors of the parking garage.

Indian Gaming Regulatory Act. In 1988, Congress enacted IGRA to provide a statutory basis for the operation and regulation of gaming on Indian lands. IGRA provides that an Indian tribe may conduct gaming activity on Indian lands if the activity “is not specifically prohibited by federal law and is conducted within a State which does not prohibit such gaming activity.”

IGRA distinguishes between three classes of gaming (Class I, Class II, and Class III) and provides for different forms of regulation for each class. Class I gaming includes “social games” for minor prizes or “traditional forms of Indian gaming.” Class II gaming is defined to include bingo and card games that are explicitly authorized by the laws of the state, or that are not explicitly prohibited by the laws of the state and are played at any location in the State, so long as the card games are played in conformity with those laws and regulations. Class III gaming includes such things as slot machines, casino games, and banked card games such as black jack and baccarat. Class III gaming may only be conducted under terms of a compact negotiated between an Indian tribe and a State.

IGRA was enacted against a legal background in which Indian tribes and individuals generally are exempt from state taxation within their own territory. IGRA provides that with the exception of assessments permitted under the statute, to defray the State’s costs of regulating gaming activity, IGRA shall not be interpreted as conferring upon a State authority to impose any tax, fee, charge, or other assessment upon an Indian tribe to engage in Class III activity. Nor may a State refuse to enter into negotiations based on the lack of authority to impose such a tax, fee, charge, or other assessment.

When a tribe requests negotiations for a Class III compact, IGRA requires the State to negotiate with the Indian tribe in good faith. IGRA provides a comprehensive process to prevent an impasse in compact negotiations, which is triggered when a tribe files suit alleging that the State has refused to negotiate or has failed to negotiate in good faith.

Before 2000, the California Constitution prohibited Class III gaming. In 2000, California voters approved Proposition 1A, which had been proposed by the Governor and passed by the Legislature. Proposition 1A amended the California Constitution to permit the State to negotiate compacts with federally recognized Indian tribes for certain Class III gaming activities. Because non-Indian parties were still forbidden from operating gaming facilities, Proposition 1A granted Indian tribes a “constitutionally protected monopoly on most types of Class III games in California.”

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

SUPPORT: (Verified 8/26/25)

None received

OPPOSITION: (Verified 8/26/25)

None received

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

8/27/25 16:30:37

**** END ****

Date of Hearing: April 23, 2025

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Blanca Rubio, Chair

ABPCA Bill Id:AB 1527 (

Author:Committee on Governmental Organization) – As Introduced Ver:March 18, 2025

SUBJECT: Alcoholic beverages: beer

SUMMARY: This bill would revise the definition of “beer” within the Alcoholic Beverage Control Act (Act). The changes would allow beer to be produced using alternative grains and clarify that fermentation must take place in drinkable water. Specifically, this bill:

1) Revises the definition of “beer” for purposes of the Act to provide that beer may be produced using other grain and to specify that fermentation occurs in drinkable water.

2) Makes technical and clarifying changes.

EXISTING LAW:

1) Establishes Department of Alcoholic Beverage Control (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) 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)

5) 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 provision and may dispose of the beer, as defined. (Cal. Bus. & Prof. Code § 25206)

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

COMMENTS:

Purpose of the bill. According to the author’s office, "Traditionally, beer has been brewed using barley, malt, and hops. However, over thousands of years, brewers have experimented with a wide variety of adjunct ingredients to create unique and innovative beer styles that reflect both seasonal influences and regional traditions. This bill aims to update the Act by expanding the definition of beer to acknowledge this historical diversity while aligning with Federal regulations on beer flavoring. Additionally, it ensures that fermentation occurs in drinkable water.”

Background.

Alcohol Regulation. The enactment of the 21st Amendment to the United States Constitution in 1933 repealed the 18th Amendment and ended the era of Prohibition. Accordingly, states were granted the authority to establish alcoholic beverage laws and administrative structures to regulate the sale and distribution of alcoholic beverages. In California, this responsibility was originally entrusted to the Board of Equalization (BOE). In 1955, however, the State Constitution was amended to shift this responsibility to the newly established ABC. ABC has the 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 or occupation taxes for this purpose.

Federal Rule on Beer Flavoring. In 2006, the Department of the Treasury and its Alcohol and Tobacco Tax and Trade Bureau adopt as a final rule (Title 27, Code of Federal Regulations, Chapter 1, Section 25.15) that states, "Beer must be brewed from malt or from substitutes for malt. Only rice, grain of any kind, bran, glucose, sugar, and molasses are substitutes for malt. In addition, the following materials may be used as adjuncts in fermenting beer: honey, fruit, fruit juice, fruit concentrate, herbs, spices, and other food materials.”

Using Flavors in Brewing. There are a number of methods of adding flavors to beer. These are not the flavors that are imparted naturally by the barley, malt, hops, yeast or other grain, but rather intentional additions such as fruits and spices that give a beer its uniqueness. Herbs, spices, or flavorings can be added before or after the boil. There are many other brewing sugars used in brewing beer besides barley. Any starch or sugar can be used as a fermentable adjunct in the making of beer.

There are basically two classes of fermentables that need consideration: sugars that can be fermented directly without any processing, which includes processed sugars, syrups, honey, fruits, and so on; and sugars that are locked up in starches or complex carbohydrates which require some form of processing to extract or convert the simple(r) sugars needed by the yeast.

This second class includes things like grains, roots, vegetables, and anything else that does not have readily accessible sugars. Yeast, which is very fermentable, uses enzymes to break down the maltose in wort (the liquid extracted from the mashing process during the brewing of beer) into a simple sugar. Fruit sugar, is the most abundant naturally occurring source of fermentables in nature, but is not used much in brewing. It is similar to glucose but has a different structure which makes it a difficult fermentable for yeast.

Related legislation. AB 744 (M. Rodriguez) of 2025. This bill would exempt draught beer drawn at a premises operated under a beer manufacturer license from labeling requirements otherwise applicable to an on-sale retail license. (Assembly Committee on Appropriations)

AB 1287 (Fong) of 2025. This bill would provide 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 ABC for the retail sale of beer on a temporary basis for special events. (Assembly Committee on Appropriations)

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.

AB 205 (Daly), Chapter 60, Statutes of 2019. Revised the definition of "beer" for purposes of the Act to provide that beer may be produced using honey, fruit juice, fruit concentrate, herbs, spices, and other food materials, as adjuncts in fermentation.

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.

AB 1812 (Chesbro), Chapter 96, Statutes of 2012. Added clarity to the definition of “beer” in the Act by making it explicit that 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.

SB 39 (Padilla) Chapter 140, Statutes of 2011. Prohibited the import, production, manufacture, distribution, or sale of beer to which caffeine has been directly added as a separate ingredient at retail locations within the state.

AB 346 (Beall) Chapter 624, Statutes of 2008. Provided that any container of beer or alcoholic beverage, other than sake, that is approved for labeling as a malt beverage under the Federal Alcohol Administration Act, that derives 0.5% or more of its alcoholic content by volume from flavors or other ingredients containing distilled alcohol and that is sold within this state on or after July 1, 2009, shall bear a distinctive, conspicuous, and prominently displayed label, or firmly affixed sticker, as defined.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

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