CA AB-2069 Soju Bill

[Golden Beaver Distillery]

CALIFORNIA DISTILLERS, WHOLESALERS AND FARMERS The California Department of Alcoholic Beverage Control (ABC) issues several different types of retail licenses authorizing the sale of alcohol. One of these license types is for on-sale beer and wine (i.e. License type 40, 41, 42). Among others, these licenses are issued to bona-fide public eating places (generally restaurants) and taverns/bars and authorize the consumption of beer and wine, but not distilled spirits.   Under current law, an on-sale licensee authorized to sell wine may also sell imported soju and shochu, alcoholic beverages typically distilled from grains and containing no more than 24 percent of alcohol by volume. However, the sale of domestically produced soju and shochu by on-sale licensees is not allowed under current law. Restaurants and other on-sale license holders interested in selling domestic shochu and soju would be required to obtain a more expensive on-sale general license type, which allows the sale of distilled spirits. Even though the domestic products meets the same requirements that are in place for the imported products, they do not enjoy the same exemption under current law. Bill Text THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1.  Section 23398.5 of the Business and Professions Code is amended to read: 23398.5.  Any on-sale license, issued pursuant to this division that authorizes the sale of wine, also authorizes the sale of both all of the following: (a) Soju, an imported Korean alcoholic beverage that contains not more than 24 percent of alcohol by volume and is derived from agricultural products. (b) Shochu, an imported Japanese alcoholic beverage that contains not more than 24 percent of alcohol by volume and is derived from agricultural products. (c) Domestically produced soju and shochu, alcoholic beverages that contain not more than 24 percent of alcohol by volume and are derived from agricultural products. Argument for the bill:   "The need for AB 2069 is supported by the existing regulatory framework in California, which permits on-sale licensees to sell imported soju and shochu but prohibits the sale of domestically produced alternatives. This regulatory disparity creates a significant disadvantage for California producers and restricts consumer choice. Additionally, the bill aligns with the US Department of Treasury’s Alcohol Tax and Trade Bureau (TTB) definitions, which do not confine soju and shochu sales to imported products.  The TTB only recognized Andong Soju as part of a US Korea free trade agreement (see TTB ruling 2012-3).   Domestic soju is a growing and diverse market that should not be competitively disadvantaged because of state law."   This bill will be heard by the GO Committee this March and we need your help.   Attached is a draft letter of support for the bill that can be edited and forward to the CA Advocates via this link (you will need to create an account) and a copy to Katja.Townsend@asm.ca.gov . These letter should be received ASAP.   Thank you,   Kris Koenig Golden Beaver Distillery kris (at) GoldenBeaverDIstillery.com

AB2069_MockSupport_Letter_v1.doc

[Erik Owens]

American Distilling Institute has submitted a letter of support on the CA Legislation website: https://calegislation.lc.ca.gov/Advocates/faces/index.xhtml

[Golden Beaver Distillery]

20 hours ago, Erik Owens said:

American Distilling Institute has submitted a letter of support on the CA Legislation website: https://calegislation.lc.ca.gov/Advocates/faces/index.xhtml

Thank you!