BILL ANALYSIS Ó
AB 573
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CONCURRENCE IN SENATE AMENDMENTS
AB 573 (Chesbro)
As Amended June 15, 2012
Majority vote
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|ASSEMBLY: | |(May 12, 2011) |SENATE: |36-0 |(August 9, |
| | | | | |2012) |
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(vote not relevant)
Original Committee Reference: G.O.
SUMMARY : Corrects inconsistencies in existing provisions of the
Alcoholic Beverage Control (ABC) Act in order to allow all
licensed manufacturers and wholesalers the same opportunity to
inspect, clean and replace their tapping equipment.
The Senate amendments delete the Assembly version of the bill,
and instead change an inconsistency in current law with regards
to the Act in order to allow manufacturers to furnish, inspect,
and service keg and barrel tapping equipment for on-sale
licensees.
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.
2)Existing law, known as the "tied-house" law, separates the
alcoholic beverage industry into three component parts of
manufacturer, wholesaler, and retailer. The original policy
rationale for this body of law was to prohibit the vertical
integration of the alcohol industry and to protect the public
from predatory marketing practices. Generally, other than
exemptions granted by the Legislature, the holder of one type
of license is not permitted to do business as another type of
licensee within the "three-tier" system.
3)Exempts from specified tied-house restrictions the occasional
inspection and cleaning by beer manufacturers and wholesalers
of beer taps and tapping equipment, as provided.
4)Permits a beer manufacturer or beer wholesaler to furnish,
AB 573
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give, rent, lend, or sell, any equipment, fixtures, or
supplies, other than alcoholic beverages, to a retailer whose
equipment, fixtures, or supplies were lost or damaged as a
result of a natural disaster, as provided.
AS PASSED BY THE ASSEMBLY , this bill allows a holder of a beer
and wine wholesalers license and an off-sale retail license, who
only sell wine to return wine they have exported from the state.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : This bill was substantially amended in the Senate and
the Assembly-approved provisions of this bill were deleted.
Purpose the bill : The author's office notes that this measure
would not expand any existing privileges within the Act but
rather it is "code cleanup." Specifically, existing law,
Business and Professions Code Section 25510, permits a
manufacturer to furnish to a licensed wholesaler, and a licensed
wholesaler or manufacturer to furnish to an on-sale licensee
specified maintenance on any licensed beverage tapping
equipment. However, language in Business and Professions Code
Sections 25504.5 and 25511 limits access to this cleaning
service to "beer" manufacturers and their wholesalers. The
author's office states that this bill would simply strike the
reference to "beer" in Sections 25504.5 and 25511 so that those
provisions are consistent with Section 25510.
In Support : Writing in support, the Wine Institute points out
that when it consulted with ABC staff regarding the
inconsistencies in these statutes, the ABC suggested that the
changes incorporated in this bill would provide uniformity and
clarity. Also writing in support, the Family Winemakers of
California indicates that wine casks have recently emerged as a
most cost effective way to supply licensed on-sale premises that
sell wine by glass and that this bill would allow wineries to
supply and service such equipment.
Related legislation : AB 2878 (Aghazarian) Chapter 604, Statutes
of 2004, added "filters" to the list of alcoholic beverage
tapping equipment that can be furnished by a licensed wholesaler
or manufacturer to an on-sale licensee.
AB 573
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Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0004684