BILL ANALYSIS Ó
AB 573
Page 1
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)
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|COMMITTEE VOTE: |16-0 |(August 29, 2012) |RECOMMENDATION: |concur |
|(G.O.) | | | | |
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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.
AB 573
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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, 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 allowed 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 ABC 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
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equipment that can be furnished by a licensed wholesaler or
manufacturer to an on-sale licensee.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0005813