BILL NUMBER: AB 323 CHAPTERED 07/27/07 CHAPTER 131 FILED WITH SECRETARY OF STATE JULY 27, 2007 APPROVED BY GOVERNOR JULY 27, 2007 PASSED THE SENATE JULY 16, 2007 PASSED THE ASSEMBLY JULY 20, 2007 AMENDED IN SENATE JUNE 21, 2007 AMENDED IN ASSEMBLY MARCH 27, 2007 INTRODUCED BY Assembly Member Evans (Principal coauthor: Senator Wiggins) (Coauthors: Assembly Members Aghazarian, Benoit, Berg, Blakeslee, DeVore, Dymally, Horton, Huff, Huffman, Maze, Nava, Ruskin, Torrico, and Wolk) (Coauthor: Senator Hollingsworth) FEBRUARY 13, 2007 An act to amend Section 25503.9 of, and to add Section 24045.18 to, the Business and Professions Code, relating to alcoholic beverages, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 323, Evans. Alcoholic beverage licensees: wine. The Alcoholic Beverage Control Act provides that nothing in that law prohibits a winegrower from giving or selling wine to certain nonprofit organizations, as specified, at prices other than those contained in schedules filed with the Department of Alcoholic Beverage Control. Existing law allows nonprofit organizations holding a temporary wine license to conduct winetastings. This bill would add beer and wine wholesalers that also hold off-sale beer and wine retail licenses and only sell wine to those who are not prohibited from giving or selling wine to those nonprofit organizations. This bill would also allow beer and wine wholesalers that also hold off-sale beer and wine retail licenses and only sell wine, subject to specified conditions, to assist a nonprofit organization holding a temporary wine license in conducting a winetasting. The Alcoholic Beverage Control Act provides that a violation of its provisions is a misdemeanor, unless otherwise specified. This bill, by creating a new crime, 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. This bill would declare that it is to take effect immediately as an urgency statute. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 24045.18 is added to the Business and Professions Code, to read: 24045.18. Notwithstanding any other provision of this division, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine may assist a nonprofit organization holding a temporary wine license in conducting a winetasting. The privilege granted under this section for a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine shall apply only to wine produced for the donating licensee that is labeled with a brand owned exclusively by the donating licensee and shall include in the tasting only wine donated by the licensee to the event. SEC. 2. Section 25503.9 of the Business and Professions Code is amended to read: 25503.9. Nothing in this division prohibits a winegrower or a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer or a distilled spirits manufacturer's agent from giving or selling distilled spirits, or a licensed importer from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following: (a) A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of 1954 of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code. (b) A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of 1954 of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association. (c) A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of 1954 of the United States and is defined as a tax exempt organization under Section 23701a, 23701d, 23701e, 23701f, or 23701r of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, distilled spirits manufacturer, distilled spirits manufacturer's agent, or licensed importer pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIII 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 B of the California Constitution. SEC. 4. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to ensure that laws regulating alcoholic beverages are enacted at the earliest possible time, thereby protecting public health, it is necessary that this act take effect immediately.