BILL ANALYSIS                                                                                                                                                                                                    


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                              UNFINISHED BUSINESS

          Bill No:  SB 806
          Author:   Wiggins (D), et al
          Amended:  6/22/10
          Vote:     21


           ASSEMBLY FLOOR  :  77-0, 8/23/10 - See last page for vote

            SUBJECT  :    Alcoholic beverages:  wine returns:  
                      winegrowers and bottlers: records

           SOURCE  :     Author

           DIGEST  :    This bill 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.

           Assembly Amendments  delete the Senate version relating to a  
          different issue within the Alcoholic Beverage Control Act,  
          and insert the current provisions.

           ANALYSIS  :    

          Existing law:

          1.Establishes the Department of Alcoholic Beverage Control  
            (ABC) and grants it exclusive authority to administer the  
            provisions of the ABC Act in accordance with laws enacted  


                                                                SB 806

            by the Legislature.  This involves licensing individuals  
            and 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  

          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  

          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.


                                                                SB 806

          2.Makes technical, non-substantive changes to a section of  
            the ABC Act provides for specified recordkeeping  
            requirements for winegrowers and bottlers of wine within  
            specified counties.  This bill makes technical,  
            nonsubstantive amendments to this requirement.

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

          In addition, this bill contains language which is technical  
          and nonsubstantive pertaining to specified recordkeeping  
          requirements for specified counties.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Bass, Beall,  
            Bill Berryhill, Tom Berryhill, Block, Blumenfield,  
            Bradford, Brownley, Buchanan, Caballero, Charles  
            Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De  
            La Torre, De Leon, DeVore, Eng, Evans, Feuer, Fletcher,  
            Fong, Fuentes, Fuller, Gaines, Galgiani, Garrick, Gatto,  
            Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,  
            Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue,  
            Bonnie Lowenthal, Ma, Mendoza, Miller, Monning, Nava,  
            Nestande, Niello, Nielsen, Norby, V. Manuel Perez,  
            Portantino, Ruskin, Salas, Saldana, Silva, Skinner,  
            Smyth, Solorio, Audra Strickland, Swanson, Torlakson,  
            Torres, Torrico, Tran, Villines, Yamada, John A. Perez


                                                                SB 806

          NO VOTE RECORDED:  Furutani, Vacancy, Vacancy

          TSM:kc  8/24/10   Senate Floor Analyses 


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