BILL ANALYSIS Ó
AB 647
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Date of Hearing: April 10, 2013
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Hall III, Isadore, Chair
AB 647 (Chesbro) - As Amended: April 8, 2013
SUBJECT : The Alcoholic Beverage Control Act: beer
manufacturers: containers.
SUMMARY : Requires a beer manufacturer that refills any
container supplied by a consumer to affix a label, as specified,
on the container prior to its resale to the consumer.
Specifically, this bill :
1) States that all beer sold in this state shall have a label
affixed to the package or container thereof, containing the
brand and type of beer upon which shall appear the true and
correct name and address of the manufacturer of the beer, and
also the true and correct name of the bottler of the beer if
other than the manufacturer.
2) Requires a manufacturer, importer, or wholesaler of beer
shall not use a container or carton as a package or container of
a beer other than the beer as is manufactured by the
manufacturer whose name or brand of beer appears upon the
container or carton, or use as a package or container of a beer
a container or carton which bears the name of a manufacturer of
beer or the brand of any beer other than those of the
manufacturer of the beer contained in the container or carton.
3) Requires a beer manufacturer that refills any container
supplied by a consumer shall affix a label that complies with
this section on the container prior to its resale to the
consumer. Any information concerning any beer previously
packaged in the container, including, but not limited to,
information regarding the manufacturer and bottler of the beer,
or any associated brands or trademarks, shall be removed or
completely obscured in a manner not readily removable by the
consumer prior to the resale of the container to the consumer.
4) Provides that a "Beer manufacturer" means any person that
has facilities and equipment for the purposes of, and is engaged
in the commercial manufacture of beer.
EXISTING LAW :
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1) The Alcoholic Beverage Control Act, administered by the
Department of Alcoholic Beverage Control, prescribes
requirements for licenses for the manufacture, distribution, and
sale of alcoholic beverages.
2) The Act requires that all beer sold in the state have a
label affixed to its package or container with the true and
correct name and address of the manufacturer of the beer and the
true and correct name of the bottler of the beer if other than
the manufacturer.
FISCAL EFFECT : Unknown.
COMMENTS :
According to the author, this bill addresses two areas of
concern: 1) the abuse of the statutory definition of "beer
manufacturer" by licensed entities that do not possess or use
facilities or equipment to actually manufacture beer; and 2) the
uncertainty of labeling requirements for the re-filling of
off-sale consumer sized beer containers, aka "growlers" by
licensed beer manufacturers.
The author points out that a brewery as "beer manufacturer" has
both privileges and responsibilities that accompany their
licensed status in California. What defines a "beer
manufacturer" in statute is important to state regulatory
agencies and law enforcement, as well as, industry and other
stakeholders. A "beer manufacturer" is currently defined by
Business and Professions Code Section 23012 as: "any person
engaged in the manufacture of beer."
AB 647 proposes to strengthen the current definition of "beer
manufacturer" in the State of California to ensure; 1) that the
law is clear and unambiguous; and 2) the licensed privileges and
responsibilities of beer manufacturers are taken seriously and
not abused. Specifically, this bill adds a requirement to
current law that a "beer manufacturer" shall not just be engaged
in the manufacturing of beer, but that a beer manufacturer
actually has the facilities and equipment for the purposes of,
and is engaged in, the commercial manufacture of beer.
This bill also deals with California growler laws. The author
states that the refilling of off-sale consumer sized beer
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containers (aka "growlers") by beer manufacturers is a popular
way for consumers to sample beers from different breweries in an
affordable way and offers an environmentally favorable method of
doing so. Currently in the State of California, if you buy a
growler container it can only be filled with beer from the
brewery that sold that growler. Consumers would like to re-use
their containers from one brewery to the next but labeling
requirements and questions by licensees pose a barrier. While
the California Craft Brewers Association has provided a
clarification to the craft beer industry on what is required, it
remains clear that additional statutory guidance on actual
labeling of the containers is warranted and needed.
AB 647 proposes to amend Business and Professions Code Section
25200 to include requirements that any beer manufacturer that
refills any container supplied by a consumer to: 1) obscure any
information concerning any beer previously packaged in the
container including, but not limited to, information regarding
the manufacturer or any associated brands or trademarks on the
container; and 2) affix a label that otherwise complies with B&P
Code 25200 and includes the name and address of the beer
manufacturer re-filling the container, as well as, the brand and
type of beer being placed into the container.
Background : Business and Professions Code Section 25200 of the
ABC Act and Rule 130 of the California Code of Regulations
address the issue of beer labeling. Form ABC-412 (Application
for Label Approval) has instructions that further explain ABC's
labeling requirements. Growlers, like any other type of beer
container, must have a label with certain mandatory information.
This assumes, of course, that the growler is sold "to go,"
either to the consumer/purchaser or for resale to wholesalers or
retailers.
Business and Professions Code Section 25204 mandates an
alcoholic content statement for beer if the product contains
more than 5.7% alcohol by volume. Some beer manufacturers list
alcoholic content on all their products. According to ABC, this
is acceptable but not required.
California law does not define the term "growler." Since a
"growler" is a container used to contain beer, a growler is
therefore considered a container, and is subject to the
California laws that regulate beer packaging and labeling. Any
"container" can be used as a growler - as long as it bears the
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approved labeling of the brewery filling it, and as long as any
non-pertinent information is obscured.
Who regulates alcohol and labels in California ? The enactment
of the 21st Amendment to the U.S. 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
State 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 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 or occupation taxes for this purpose.
Existing law provides every manufacturer or bottler of beer in
this state or elsewhere whose beer is sold within the state
shall file with ABC the brand name or names under which they
sell or label their beer. Existing law also provides for
specified labeling requirements for containers of alcoholic
beverages sold within this state, as specified. For beer,
current law requires compliance with federal regulations
requiring a statement of alcohol content as a percentage of
alcohol by volume, as specified.
Related legislation : SB 533 (Knight), of 2013. Authorizes a
beer manufacturer, other than the beer manufacturer, importer,
or wholesaler identified on the returnable beer container's or
carton's label, to refill the container or carton if the
original label on the container or carton is removed and
replaced by the refilling beer manufacturer, as provided.
(Pending in Senate Governmental Organization Committee).
Prior legislation : 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
(FAAA), 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
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displayed label, or firmly affixed sticker, as defined.
REGISTERED SUPPORT / OPPOSITION :
Support
California Craft Brewers Association
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531