by Sheri A. Robesky
Compli Beverage Compliance
AB 1649 was introduced to legislature on January 13th, 2010 and since has passed through the State Assembly twice with flying colors. It was read to the Senate for the first time on May 3rd, 2010.
About AB 1649:
California wineries continue to strive for improvement: making high quality wines, practicing sustainable farming and production, preaching responsible consumption practices, and marketing an unforgettable brand name. Recent advancements in technology are refining the winemaking experience by leaps and bounds. These advances include processes for reducing the alcohol in high alcohol content wines. When alcohol reduction processes are completed, a by- product is produced which is currently considered a ‘spirit of wine’. This a non-potable by-product of the wine fermentation process, but a distilled spirit none the less by CA ABC definition. CA ABC states that this by-product production merits a winery to secure an 04 Distilled Spirits license in addition to their 02 Producer license. Currently, fifty of the over 2700 licensed California wineries hold this Type 04 license, so they can legally reduce the percentage of alcohol by volume in their wines. The licensing process is quite complex and requires a lengthy application and significant reporting on an ongoing basis. All of this for an undrinkable product of the winemaking experience.
AB 1649 was introduced in order to change the ABC Business and Professional Code to allow winemakers to use these winemaking tools without having to obtain the distilled spirits license.
According to the bill’s sponsor, the Wine Institute, existing law authorizes a winery to produce the spirits of wine by-product, but the law is unclear whether or not the winery needs to obtain a Type 04 distilled manufacturer’s license to deal with this byproduct. AB 1649 states a winegrower (winery) does not need to purchase a separate license when producing spirits of wine (byproduct of wine fermentation) provided the spirits of wine are blended into the wine produced by the winegrower, are sold to an industrial alcohol dealer, or are destroyed by the winegrower.
This bill is makes good business sense, further emphasizing Sacramento’s commitment to the wine industry as it relates to the California economy.
Below you will find more information regarding the specifics of AB 1649
http://www.aroundthecapitol.com/billtrack/analysis.html?aid=36960