BILL NUMBER: SB 1560	CHAPTERED  09/27/08

	CHAPTER  412
	FILED WITH SECRETARY OF STATE  SEPTEMBER 27, 2008
	APPROVED BY GOVERNOR  SEPTEMBER 27, 2008
	PASSED THE SENATE  AUGUST 28, 2008
	PASSED THE ASSEMBLY  AUGUST 20, 2008
	AMENDED IN ASSEMBLY  AUGUST 12, 2008
	AMENDED IN ASSEMBLY  JUNE 16, 2008
	AMENDED IN SENATE  APRIL 2, 2008

INTRODUCED BY   Senator Yee
   (Principal coauthor: Senator Wiggins)
   (Principal coauthor: Assembly Member Evans)

                        FEBRUARY 22, 2008

   An act to amend Section 25503.22 of the Business and Professions
Code, relating to alcoholic beverages, and declaring the urgency
thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1560, Yee. Alcoholic beverages: licenses.
   Existing law provides that a retail on-sale license may be issued
or transferred to any person with respect to premises which are an
integral part of a restaurant owned by, or operated by or on behalf
of, the licensee, notwithstanding that a wholesaler licensed to sell
alcoholic beverages in states other than California has an interest
in the premises, license, or licensee if (1) the licensee purchases
no alcoholic beverages for sale in this state from other than a
California wholesaler, nor purchases alcoholic beverages from any
wholesale licensee or manufacturer holding specified ownership
interests and (2) no more than 30% of the revenues of the restaurant
are derived from the sale of alcoholic beverages.
   This bill would expand that license issuance and transfer
provision to provide that a retail license may be issued,
transferred, or renewed to any person with respect to premises which
are owned by, or operated by or on behalf of, the licensee and would
revise one of the conditions of the issuance, transfer, or renewal to
provide that no more than 40% of the revenues of the retailer are
derived from the sale of alcoholic beverages.
   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 25503.22 of the Business and Professions Code
is amended to read:
   25503.22.  (a) Nothing in this division shall prohibit the
issuance, transfer, or renewal of any retail license to any person
with respect to premises which are owned by, or operated by or on
behalf of, the licensee, notwithstanding that a wholesaler licensed
to sell alcoholic beverages in states other than California has an
interest, directly or indirectly, in the premises, in the retail
license or in the retail licensee, provided that each of the
following conditions are met:
   (1) The retail licensee shall purchase no alcoholic beverages for
sale in this state other than from a California wholesale licensee,
and the retail licensee shall purchase no alcoholic beverages from
any manufacturer or wholesale licensee holding the ownership of any
interest, directly or indirectly, in the premises, in the retail
license or in the retail licensee.
   (2) Not more than 40 percent of the gross annual revenues of the
retailer are derived from the sale of alcoholic beverages.
   (b) The Legislature finds that it is necessary and proper to
require a separation between manufacturing interests, wholesale
interests, and retail interests in the production and distribution of
alcoholic beverages in order to prevent suppliers from dominating
local markets through vertical integration and to prevent excessive
sales of alcoholic beverages produced by overly aggressive marketing
techniques. The Legislature further finds that the exception
established by this section to the general prohibition against tied
interests must be limited to its expressed terms so as not to
undermine the general prohibition, and intends that this section be
construed accordingly.
  SEC. 2.  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.