Bill Full Text
Home
-
Bills
-
Bill
-
Authors
-
Dates
-
Locations
-
Analyses
-
Organizations
<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
<ns0:Description>
<ns0:Id>20250AB__158599INT</ns0:Id>
<ns0:VersionNum>99</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-01-14</ns0:ActionDate>
</ns0:Action>
</ns0:History>
<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>1585</ns0:MeasureNum>
<ns0:MeasureState>INT</ns0:MeasureState>
</ns0:LegislativeInfo>
<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Members Connolly and Ransom</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Connolly</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Ransom</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title> An act to amend Section 25243 of, and to add Section 25243.5 to, the Business and Professions Code, relating to alcoholic beverages. </ns0:Title>
<ns0:RelatingClause>alcoholic beverages</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Wine labeling: “American” or “United States” appellation.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>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.</html:p>
<html:p>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.</html:p>
<html:p>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.</html:p>
<html:p>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.</html:p>
<html:p>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.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
</ns0:ImmediateEffectFlags>
</ns0:MeasureIndicators>
</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_2AF9AB77-25AB-49E2-9042-2A814A759CEB">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:Content>
<html:p>The Legislature finds and declares all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
According to a 2024 survey by PricewaterhouseCoopers, more than 80 percent of respondents expressed concern about climate change in their purchasing decisions and 44 percent said they would pay more to support the land and environment.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A 2023 Packer Fresh Trends survey found that 62 percent of consumers said that they make a conscious effort to buy locally grown or regional produce.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Consumers have come to expect American wines to be produced under some of the strongest labor and environmental laws in the world. This is because 81 percent of
American wine is from California, approximately 65 percent of California winegrape acres are certified sustainable, and more than 90 percent of California’s wine production comes from sustainable certified wineries. This makes California a global leader in sustainable winegrowing practices.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
When surveyed by the Alliance for American Manufacturing, 77 percent of Americans said they prefer to buy goods made in the United States.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Senate Bill 1004 (Holmdahl), Chapter 676 of the Statutes of 1961, codified California’s “Made in the U.S.A.” law, making it unlawful for any person, firm, corporation, or association to sell or offer for sale any merchandise that is labeled as being made or manufactured in the United States when any article, unit, or part of the merchandise has been entirely or substantially made, manufactured, or produced outside of the United States.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
In January 2011, the California Supreme Court described the importance of truthful and accurate claims of domestic origin, stating, “In particular, to some consumers, the ‘Made in U.S.A.’ label matters. A range of motivations may fuel this preference, from the desire to support domestic jobs, to beliefs about quality, to concerns about overseas environmental or labor conditions, to simple patriotism. The Legislature has recognized the materiality of this representation by specifically outlawing deceptive and fraudulent ‘Made in America’ representations. The object of Section 17533.7 ‘is to protect consumers from being misled when they purchase products in the belief that they are advancing the interests of the United States and its industries and workers.’ (Sen. Holmdahl, sponsor ... letter to Governor Brown, May 23, 1961) [‘There are many Americans who feel that American-made articles are of higher quality, and who rely on the “Made in
U.S.A.” label’]. The Legislature evidently recognized some companies were using or might be tempted to use inaccurate ‘Made in America’ labeling, that some consumers might be deceived by and rely on it, and that consumers and competitors who honestly made their wares in the United States and marketed them as such were being or would be harmed.” (Kwikset Corp. v. Superior Court (2011) 51 Cal.4th 310, 329. Internal citations omitted.)
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
In a 2015 challenge to Section 17533.7 of the Business and Professions Code, the United States District Court held that the California labeling law did not violate the dormant commerce clause. (Clark v. Citizens of Humanity, LLC (2015) 97 F.Supp.3d 1199.)
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
California produces an average of 81 percent of total United States wine production. This makes California the dominant force in the American wine industry, even though other states also
produce and consume wine. In hearing a case challenging California’s wine labeling law, the California Supreme Court ruled, “... We conclude that the state’s interest in protecting California wine consumers from misleading brand names and preserving and maintaining the reputation and integrity of its wine industry as a result of the use of such brand names in out-of-state and foreign market outweighs the indirect and temporary effect of [Section 25241 of the Business and Professions Code] on out-of-state wine consumers. Accordingly, we hold that [Section] 25241 does not violate the commerce clause.” (Bronco Wine Co. v. Jolly (2005) 129 Cal.App.4th 988, 1028.)
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Under existing law, when a consumer purchases wine labeled as “American” or “U.S.A.,” 25 percent of the grapes used to make that wine could actually have been grown in South America, Europe, New Zealand, Australia, or elsewhere. Based on the label, those consumers may believe the wine
is produced domestically, and most likely in California, but the bulk wine in that bottle could have actually been shipped thousands of miles creating a significant carbon footprint in putting that wine on California shelves and could have been produced in a country that has lesser labor or environmental laws than in California.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
While federal labeling laws for an American Viticultural Area (AVA) allow for 25 percent of the wine to come from outside that AVA, state law for use of “California” or a subregion in California require that the 25 percent must still be from California. However, the “American” wine label has no national, continental, or even hemispheric restrictions as to the origin of the 25 percent that is not from the United States.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
This measure is intended to provide truth in labeling for American wine so that consumers are aware of the origin of the wine and
can make an informed choice when determining whether to purchase domestic or imported wine.
</html:p>
</ns0:Content>
</ns0:BillSection>
<ns0:BillSection id="id_27828C35-6110-4101-A478-0FDD38C6C126">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:type="locator" ns3:href="urn:caml:codes:BPC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'9.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'13.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'25243.'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 25243 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_1DFBA144-7D4C-4BF8-B44B-352F537B64A1">
<ns0:Num>25243.</ns0:Num>
<ns0:LawSectionVersion id="id_978F2A61-8B9E-40B7-89B5-9735B602B40F">
<ns0:Content>
<html:p>Except as provided in Section 25243.5, this article does not preclude a wine from using, on any label, packaging material, or advertising, either (a) a truthful, nonmisleading appellation of origin that complies with Section 4.25(c) of Title 27 of the Code of Federal Regulations governing multicounty appellations, or (b) a truthful, nonmisleading statement as to the geographic location of the wine’s stated appellation or appellations of origin
that is located in not more than two counties, for which the wine qualifies under applicable federal law, or both the appellation of origin and the statement of geographic location; provided that the label, packaging material, or advertising contains no other use of a name of viticultural significance, in a brand name or otherwise, that is prohibited by Section 25241 or 25242.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_6B31696F-5809-4937-94C2-F6B409D6AA9C">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:type="locator" ns3:href="urn:caml:codes:BPC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'25243.5'%5D)" ns3:label="fractionType: LAW_SECTION">
Section 25243.5 is added to the
<ns0:DocName>Business and Professions Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_EF4B159E-D401-4A5C-89BA-69A37344984F">
<ns0:Num>25243.5.</ns0:Num>
<ns0:LawSectionVersion id="id_6D92D750-D4FB-458C-A51A-6E29CD44B1C7">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Notwithstanding any other law, a wine produced, bottled, labeled, offered for sale, or sold in California shall not indicate an appellation of “American” or “United States” on any label, brand name, packaging material, or advertising unless 100 percent of the wine is derived from grapes or agricultural products containing natural or added sugar grown in the United States.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For purposes of this section, an indication of an appellation of “American” or “United States” includes, but is not limited to, use of the phrases “American wine,” “USA wine,” or “United States wine.”
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For purposes of this section, an indication of an appellation of
“American” or “United States” does not include use of the phrases “North American wine,” “Central American wine,” or “South American wine.”
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The department may seize any wine located in California that is labeled or packaged in violation of this section and may dispose of the wine pursuant to Section 25355.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
This section applies only to wine that is bottled on or after July 1, 2027.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_C3609BE1-506E-4012-B336-7B63F3D67C67">
<ns0:Num>SEC. 4.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution.
</html:p>
</ns0:Content>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>