BILL NUMBER: AB 605 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 28, 2010
AMENDED IN SENATE JUNE 7, 2010
INTRODUCED BY Assembly Member Portantino
FEBRUARY 25, 2009
An act to add Sections 23396.6 and 25503.56 to the Business and
Professions Code, relating to alcoholic beverages.
LEGISLATIVE COUNSEL'S DIGEST
AB 605, as amended, Portantino. 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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: 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.
premises, except that an instructional tasting license
shall not be issued to any of the following:
(1) Off-sale licensees at locations where motor vehicle fuel is
sold, unless the licensee operates a fully enclosed off-sale retail
area encompassing at least 10,000 square feet.
(2) Off-sale licensees at locations with a total of less than
5,000 square feet of interior retail space, unless the annual gross
sales of alcoholic beverages at the licensed location comprise at
least 75 percent of the total gross sales of all products sold at the
licensed premises.
(b) The provisions of Article 1 (commencing with Section
23770) 23790) 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, 6 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 within the interior of the existing licensed premises, but
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.
(4) An instructional event shall only take place between the hours
of 10 a.m. and 9 p.m.
(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
sixty-one dollars ($261) and shall be subject to
subdivision (c) of Section 23320 . 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 No
charge of any sort shall be made 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 broker, 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 an
instructional event scheduled by the authorized licensee or its
designated representative , 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 or its designated
representative 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.