BILL NUMBER: AB 605	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 7, 2010

INTRODUCED BY   Assembly Member Portantino

                        FEBRUARY 25, 2009

   An act to  amend Section 19412 of   add
Sections 23396.6 and 25503.56 to  the Business and Professions
Code,   relating to horse racing, and making an appropriation
therefor.   relating to alcoholic beverages. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 605, as amended, Portantino.  Horse racing: proposition
parimutuel pool wagers.   Alcoholic beverages:
instructional tasting events.  
   The Alcoholic Beverage Control Act contains various provisions
regulating the application for, the issuance of, the suspension of,
and the conditions imposed upon, alcoholic beverage licenses by the
Department of Alcoholic Beverage Control. Existing law provides for
various annual fees for the issuance of alcoholic beverage licenses
depending upon the type of license issued. The Alcoholic Beverage
Control Act provides that a violation of its provisions is a
misdemeanor, unless otherwise specified.  
   This bill would authorize the department to issue to the holder of
any off-sale retail license an instructional tasting license that
would allow the licenseholder to allow an authorized licensee, as
defined, or designated representative of that licensee, to conduct,
on a designated portion of, or contiguous to, an existing licensed
premises, an instructional event at which tastes of alcoholic
beverages may be served to consumers, as provided. The bill would
impose an original fee of $300 and an annual renewal fee of $261 for
the license, which would be deposited in the Alcohol Beverage Control
Fund. By expanding the definition of a crime, this bill would create
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.  
   Existing law, for purposes of the Horse Racing Law, defines
"proposition parimutuel pool" as the total wagers under the
parimutuel system on propositions approved by the California Horse
Racing Board that are based on the results of a live quarter horse or
harness horse race or races.  
   This bill would permit thoroughbred horse racing results to be
included in proposition parimutuel pool wagers.  
   Under existing law, all revenues distributed to the state as
license fees from horse racing are required to be deposited in the
Fair and Exposition Fund and are continuously appropriated to the
Department of Food and Agriculture for various regulatory and general
governmental purposes. 
   By expanding the definition of "proposition parimutuel pool"
wagering to apply to additional forms of horse racing, this bill
would authorize additional wagering, and would increase the amount of
continuously appropriated license fees, thereby making an
appropriation. 
   Vote:  2/3   majority  . Appropriation:
 yes   no  . Fiscal committee: yes.
State-mandated local program:  no   yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 23396.6 is added to the 
 Business and Professions Code   , to read:  
   23396.6.  (a) Notwithstanding any other provision of this
division, the department may issue to the holder of any off-sale
retail license an instructional tasting license for premises operated
in conjunction with the off-sale licensed premises.
   (b) The provisions of Article 1 (commencing with Section 23770)
and Article 2 (commencing with Section 23815) of Chapter 5, and
Section 23958.4 of this code, and Section 64.2 of Title 4 of the
California Code of Regulations shall not apply to the issuance of an
instructional tasting license. Notwithstanding paragraph (3) of
subdivision (c), the provisions of Article 2 (commencing with Section
23985) and Article 3 (commencing with Section 24011) of Chapter 6,
except for Section 23985.5 and 23986, shall apply to the issuance of
an instructional tasting license.
   (c) An instructional tasting license authorizes the holder to
allow an authorized licensee, as defined in Section 25503.56, or the
designated representative of an authorized licensee, to conduct an
instructional event at which tastes of alcoholic beverages may be
served to consumers subject to the following limitations, including
the limitations set forth in Section 25503.56:
   (1) The licenseholder shall restrict the instructional event to an
area that is in the portion of the licensed premises where alcoholic
beverages are exposed and offered for sale, and any contiguous areas
reasonably related to the merchandising or sale of alcoholic
beverages. The area where the instructional event is conducted shall
be separated from the remainder of the licensed premises by a wall,
rope, cable, cord, chain, fence, or other permanent or temporary
barrier and shall display signage prohibiting the presence of persons
under 21 years of age from entering the area. The provisions of
Section 25665 shall apply to the separated area where the
instructional event is conducted when the authorized licensee is
exercising tasting privileges set forth in Section 25503.56.
   (2) The licenseholder bears responsibility for ensuring that
persons entering the instructional event area are of legal drinking
age. The licenseholder shall not allow any consumer attending the
instructional event to leave the event area with an alcoholic
beverage.
   (3) The instructional tasting license shall not authorize the
licenseholder to conduct any on-sale retail sales to consumers
attending the instructional event.
   (d) An applicant for an instructional tasting license under this
section shall, at the time of filing the application for the license,
accompany the application with a fee of three hundred dollars
($300). The annual renewal fee for a license issued pursuant to this
section shall be two hundred sixtyone dollars ($261). Fees collected
pursuant to this section shall be deposited in the Alcohol Beverage
Control Fund. 
   SEC. 2.    Section 25503.56 is added to the 
 Business and Professions Code   , to read:  
   25503.56.  (a) Notwithstanding any other provision of this
division, an authorized licensee, or a designated representative of
an authorized licensee acting as an agent of the authorized licensee,
may conduct, on the area specified by paragraph (1) of subdivision
(c) of Section 23396.6, an instructional event for consumers on the
subject of wine, beer, or distilled spirits, including, but not
limited to, the history, nature, values, and characteristics of wine,
beer, or distilled spirits, and the methods of presenting and
serving wine, beer, or distilled spirits.
   (1) (A) Except as provided in subparagraph (B), and
notwithstanding any other provision of this division, the
instructional event may include the serving of not more than three
tastings in one day to an attendee of legal drinking age. A single
tasting of distilled spirits shall not exceed one-fourth of one
ounce, a single tasting of wine shall not exceed one ounce, and a
single tasting of beer shall not exceed three ounces. The wine, beer,
or distilled spirits tasted shall be limited to the products that
are authorized to be sold by the authorized licensee and the
licenseholder under its off-sale license.
   (B) Except for a beer and wine wholesaler who is also a beer
manufacturer, an out-of-state beer manufacturer's certificate holder,
or who holds more than six distilled spirits wholesaler's licenses,
a beer and wine wholesaler may conduct an instructional event, but
may not serve tastes of beer.
   (C) There shall be no charge for the tastings. The serving of
tastings shall not be deemed a sale of products pursuant to this
division.
   (D) A person under 21 years of age shall not serve wine, beer, or
distilled spirits at the instructional event.
   (E) All tastes shall be served by an employee of the authorized
licensee, the designated representative of the authorized licensee,
or by an employee of the designated representative of the authorized
licensee.
   (F) An authorized licensee, or a designated representative of an
authorized licensee, shall either supply the wine or distilled
spirits to be tasted during the instructional event or purchase the
wine or distilled spirits from the licenseholder at the original
invoiced cost. An authorized licensee, or a designated representative
of an authorized licensee, shall purchase beer to be tasted during
the instructional event from the licenseholder at the original
invoiced cost.
   (G) Any unused wine, beer, or distilled spirits remaining from the
tasting shall be removed from the off-sale licensed premises by the
authorized licensee or its designated representative.
   (2) If the instructional event is conducted by a designated
representative of an authorized licensee, the designated
representative shall not be owned, controlled, or employed directly
or indirectly by the licenseholder on whose premises the
instructional event is held.
   (3) An instructional event shall be limited to a single type of
alcoholic beverage and tastes, if furnished, shall only be of that
type of alcoholic beverage.
   (b) For purposes of this section:
   (1) "Authorized licensee" means a winegrower, California
winegrower's agent, beer and wine importer, beer and wine general
importer, beer and wine wholesaler, wine rectifier, distilled spirits
manufacturer, distilled spirits manufacturer's agent, distilled
spirits general importer, distilled spirits rectifier, distilled
spirits general rectifier, rectifier, out-of-state distilled spirits
shipper's certificate holder, distilled spirits wholesaler, brandy
manufacturer, brandy importer, California brandy wholesaler, beer
manufacturer, or an out-of-state beer manufacturer certificate
holder. "Authorized licensee" shall not include an entity that solely
holds a combination of a beer and wine wholesale license and an
off-sale beer and wine retail license pursuant to Section 23817.8.
   (2) "Licenseholder" means an off-sale retail licensee issued an
instructional tasting license pursuant to Section 23396.6.
   (c) Notwithstanding subdivision (e), a licenseholder may conduct
an instructional event that includes the serving of tastings only
when an authorized licensee or its designated representative are
unable to conduct a scheduled instructional event, provided the
licenseholder supplies the wine, beer, or distilled spirits used in
the instructional event and provides or pays for a person to serve
the wine, beer, or distilled spirits.
   (d) No more than one authorized licensee, or its designated
representative, may conduct an instructional event that includes the
serving of tastes of wine, beer, or distilled spirits at any one
individual licensed premises of a licenseholder per day.
   (e) A licenseholder that also holds an on-sale beer and wine
license, an on-sale beer and wine eating place license, or an on-sale
general license shall not allow an authorized licensee, or its
designated representative, to conduct an instructional event at the
same time and location as an instructional event held pursuant to
Section 23386, 25503.5, or 25503.55.
   (f) A licenseholder shall not condition the allowance of an
instructional event upon the use of a particular designated
representative of an authorized licensee.
   (g) (1) Notwithstanding any other provision of this division, and
in addition to any point of sale advertising or other advertising
items allowed under this division or under rules or regulations
promulgated by the department, an authorized licensee or its
designated representative, in his or her absolute discretion and with
permission of the licenseholder upon whose premises the
instructional event will be held, may list in an advertisement to the
general public the name and address of the licenseholder, the names
of the alcoholic beverages being featured at the instructional event,
and the time, date, and location of, and other information about,
the instructional event, provided that both of the following apply:
   (A) The advertisement does not contain the retail price of the
alcoholic beverages.
   (B) The listing of the licenseholder's name and address is the
only reference to the licenseholder in the advertisement.
   (2) Pictures or illustrations of the licenseholder's licensed
premises and laudatory references to the licenseholder in these
advertisements are not authorized. Nothing in this section shall
authorize an authorized licensee or its designated representative to
share in the costs, if any, of the licenseholder.
   (h) A licenseholder may advertise an instructional event to the
general public. The costs of this advertising shall be borne solely
by the licenseholder. Advertising permitted by this subdivision
includes flyers, newspaper ads, Internet communications, and interior
signage.
   (i) Except as otherwise provided in this division or by any rules
or regulations promulgated by the department, no premium, gift, free
goods, or other thing of value shall be given away by an authorized
licensee or its designated representative in connection with an
instructional event that includes tastings of an alcoholic beverage.
   (j) Notwithstanding any other provision of this division or any
rules or regulations promulgated by the department, the licenseholder
or the authorized licensee or its designated representative are
authorized to perform set up and break down of the instructional
event area. The authorized licensee or its designated representative
may provide, free of charge to the licenseholder, the equipment,
materials, and utensils that may be required during the instructional
event.
   (k) (1) A licenseholder shall not require, or enter into a
collusive scheme with an authorized licensee or its designated
representative to conduct one or more instructional events as a
condition of the licenseholder carrying or continuing to carry a
brand or brands of the authorized licensee or as a condition for
display or other merchandising plan which is based on an agreement to
provide shelf space. An authorized licensee or its designated
representative shall not require any preferential treatment or
benefit from, or enter into a collusive scheme with, a licenseholder
as a condition of conducting one or more instructional events,
require a licenseholder to carry or continue to carry a brand or
brands of the authorized licensee as a condition of conducting one or
more instructional events, or condition display or other
merchandising plans that are based on agreements for the provision of
shelf space on the conducting of one or more instructional events.
Any agreement, whether written or oral, entered into by and between a
licenseholder and an authorized licensee that precludes the
conducting of instructional events on the premises of the
licenseholder by any other authorized licensee is prohibited.
   (2) In addition to any other remedies available under this
division, upon a finding by the department of a failure to comply
with this subdivision, the department shall suspend the instructional
tasting license of the licenseholder and the privilege of the
authorized licensee to conduct instructional events for not less than
six months but for no more than one year. 
   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.  
  SECTION 1.    Section 19412 of the Business and
Professions Code is amended to read:
   19412.  (a) "Conventional parimutuel pool" means the total wagers
under the parimutuel system on any horse or horses in a particular
race to win, place, or show.
   (b) "Exotic parimutuel pool" means the total wagers under the
parimutuel system on the finishing position of two or more horses in
a particular race, such as quinella or exacta wagers, or on horses to
win two or more races, such as daily double wagers, pick six wagers,
or on other wagers approved by the board.
   (c) "Proposition parimutuel pool" means the total wagers under the
parimutuel system on propositions approved by the board that are
based on the results of a live thoroughbred horse, quarter horse, or
harness horse race or races.