BILL ANALYSIS
SB 1323
Page 1
Date of Hearing: June 23, 2010
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Joe Coto, Chair
SB 1323 (Walters) - As Amended: April 27, 2010
SENATE VOTE : 31-0
SUBJECT : Alcoholic beverage control: licensees.
SUMMARY : Expands the current authorization for licensees under
the Alcoholic Beverage Control Act (Act) to provide their
product free of charge to consumers during invitation-only
events. Specifically, this bill :
1)Modifies an existing provision of the Act that allows, until
January 1, 2014, a manufacturer, winegrower, rectifier, or
distiller to provide their product offerings directly to
consumers (free of charge) during invitation-only events, as
specified, to additionally grant the same privilege to (1) a
distilled spirits manufacturer's agent, (2) a holder of a
distilled spirits importer's general license who does not also
hold a distilled spirits wholesaler's license, (3) a holder of
a distilled spirits rectifier's general license, and (4) a
holder of an out-of-state distilled spirit's shipper's
certificate.
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 by
the Legislature.
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). Tied-house law generally prohibits alcoholic
beverage licensees from giving away any gift, premium or free
goods in connection with the sale or distribution of alcoholic
beverages.
3)Existing law, until January 1, 2014, permits a manufacturer,
winegrower, rectifier, or distiller, or any authorized agent
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of that person to provide, free of charge, entertainment,
food, and distilled spirits, wine, or nonalcoholic beverages
to consumers over 21 years of age at an invitation-only event
in connection with the sale or distribution of wine or
distilled spirits, as specified.
4)Authorizes the Department of ABC to impose a fee to cover the
costs of administering such events.
FISCAL EFFECT : Unknown.
COMMENTS :
This bill is intended to correct a minor oversight discovered
since enactment of AB 2293 (De Leon), Chapter 638, Statutes of
2008. AB 2293 was introduced to allow distilled spirits
manufacturers and winegrowers to provide their product offerings
directly to consumers, by invitation only, within a
controlled environment for which there is a caterer's permit
authorization. The bill contained significant restrictive
criteria in order to provide appropriate controls on promotional
events.
According to the bill's sponsor, the Distilled Spirits Council
of the United States (DISCUS), the list of licensees authorized
by AB 2293 to provide supplier hosted promotion and
entertainment was not inclusive of all DISCUS member companies.
In fact, the sponsor claims that since enactment of AB
2293, certain licensees have not been able to secure a permit
from the Department of ABC to hold an event. According to the
sponsor, this bill is simply intended to correct this
shortcoming and follow through on the original intent of AB
2293.
Prior legislation : AB 2293 (De Leon), Chapter 638, Statutes of
2008, authorized a manufacturer, winegrower, rectifier, or
distiller or any authorized agent of that person to provide,
free of charge, entertainment, food, and distilled spirits,
wine, or nonalcoholic beverages to consumers at an
invitation-only event in connection with the sale or
distribution of wine or distilled spirits. Several conditions
were placed on these events including the limitation of 400
attendees per event, a prohibition of persons under age 21, and
a maximum duration of four hours. The authorization will sunset
on January 1, 2014.
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REGISTERED SUPPORT / OPPOSITION :
Support
Distilled Spirits Council of the United States (source)
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531