AB 1585: Wine labeling: “American” or “United States” appellation.

The Alcoholic Beverage Control Act, administered by the Department of Alcoholic Beverage Control, regulates the sale and distribution of alcoholic beverages and the granting of licenses for the manufacture, distribution, and sale of alcoholic beverages within the state. A violation of the act is generally a misdemeanor.

The act imposes specified labeling requirements for containers of alcoholic beverages sold within this state, including prescribed requirements for the use of appellations from specified geographic regions in California. The act generally provides that these labeling requirements do not preclude the use of a label containing a truthful, nonmisleading appellation of origin or geographic description that complies with federal appellation law, except as specified.

Existing federal law authorizes the use of the appellation American if at least 75% of the wine is derived from fruit or agricultural products grown in the United States, as specified.

This bill, notwithstanding the above-described provisions and for wine bottled on or after July 1, 2027, would prohibit the use of the appellation American or United States on wine produced, bottled, labeled, offered for sale, or sold in California unless 100% of the wine is derived from grapes or agricultural products grown in the United States, as specified. The bill would authorize the department to seize any wine in California that is labeled or packaged in violation of this prohibition and would make related findings and declarations. By expanding the scope of an existing crime, this bill would impose a state-mandated local program.

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.