BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 806
                                                                  Page  1


          SENATE THIRD READING
          SB 806 (Wiggins)
          As Amended  June 22, 2010
          Majority vote 

           GOVERNMENTAL ORGANIZATION  18-0 APPROPRIATIONS      17-0        
           
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          |Ayes:|Coto, Anderson,           |Ayes:|Fuentes, Conway,          |
          |     |Blakeslee, Chesbro        |     |Bradford,                 |
          |     |Cook, Evans, Galgiani,    |     |Charles Calderon, Coto,   |
          |     |Hall, Hill, Jeffries, Ma, |     |Davis,                    |
          |     |Mendoza, Nestande,        |     |De Leon, Gatto, Hall,     |
          |     |Portantino, Silva,        |     |Harkey, Miller, Nielsen,  |
          |     |Torres, Torrico, Tran     |     |Norby, Skinner, Solorio,  |
          |     |                          |     |Torlakson, Torrico        |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :   Allows for the return of wine taken out-of-state  
          where the wine was purchased from a holder of a beer and wine  
          wholesaler's license and an off-sale retail license that only  
          sells wine.  Specifically,  this bill  :   

          1)Provides that a person who has purchased wine from holder of a  
            beer and wine wholesaler's license or an off-sale retail  
            license that only sells wine, and has taken delivery of that  
            wine within this state for delivery or use, and has removed  
            that wine from the state, may return all or any portion of  
            that wine to the holder of a beer and wine wholesaler's  
            license or an off-sale retail license that only sells wine in  
            this state from whom the wine was purchased, as specified.

          2)The Alcoholic Beverage Control Act (Act) provides for  
            specified recordkeeping requirements for winegrowers and  
            bottlers of wine within specified counties.  This bill would  
            make technical, non-substantive amendments to this  
            requirement.

           EXISTING LAW  :
           
           1)Establishes the Department of Alcoholic Beverage Control (ABC)  
            and grants it exclusive     authority to administer the  
            provisions of the Act in accordance with laws enacted by the  
            Legislature.  This involves licensing individuals and  








                                                                  SB 806
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            businesses associated with the manufacture, importation and  
            sale of alcoholic beverages in this state and the collection  
            of license fees or occupation taxes for this purpose. 

          2)Existing law, known as the "tied-house" law, separates the  
            alcoholic beverage industry into three component parts, or  
            tiers, of manufacturer (including breweries, wineries and  
            distilleries), wholesaler, and retailer (both on-sale and  
            off-sale).  

          3)Allows a person who has purchased wine from a licensed  
            winegrower and has taken the wine from the state, to return  
            that wine to the licensed premises of the winegrower from whom  
            the wine was purchased.

          4)Restricts the importation of alcoholic beverages for use  
            within California unless consigned to a licensed importer (or  
            as otherwise provided) and transported by common carrier.  

          5)Authorizes an on-sale beer and wine public premises licensee  
            and a licensed winegrower who exercises his or her license  
            privileges at specified locations to allow a person who has  
            purchased and partially consumed a bottle of wine to remove  
            the partially consumed bottle from the premises upon  
            departure.

          6)Provides for specified recordkeeping requirements for  
            winegrowers and bottlers of wine within specified counties.

           FISCAL EFFECT  :   According to Assembly Appropriations Committee  
          analysis, there are no significant costs associated with this  
          legislation.  

           COMMENTS  :  According to the author, this is a consumer bill  
          which will allow consumers to return wine to any winemaker  
          without regard to the winemaker's license.  Existing law only  
          allows consumers to return wine to winegrowers with an ABC Type  
          02 (Winegrower) license.  Over the past several years hundreds  
          of virtual wineries holding a combined Type 17 and Type 20  
          license sell wine to customers for use out of state.  The author  
          states, a license category should have no bearing on consumer's  
          ability to return wine.  Updating the law to clarify that  
          consumers can return wine to holders of Type 17 (Beer & Wine  
          Wholesaler) and Type 20 (Off-Sale Beer & Wine) licenses will  








                                                                  SB 806
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          clarify the law and simplify the process for consumers wishing  
          to return wine.

          In addition, this bill contains language which is technical and  
          non-substantive pertaining to specified recordkeeping  
          requirements for winegrowers and bottlers of wine within  
          specified counties.  
           

          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531



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