BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 2349|
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                                 THIRD READING


          Bill No:  AB 2349
          Author:   Nestande (R)
          Amended:  8/9/12 in Senate
          Vote:     21

           
           SENATE GOVERNMENTAL ORGANIZATION COMM. :  13-0, 6/26/12
          AYES:  Wright, Anderson, Berryhill, Calderon, Cannella, 
            Corbett, De León, Evans, Hernandez, Padilla, Walters, 
            Wyland, Yee

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8
           
          ASSEMBLY FLOOR  :  73-0, 5/10/12 (Consent) - See last page 
            for vote


           SUBJECT  :    Alcoholic beverages:  tied-house restrictions:  
          advertising

           SOURCE  :     Author


           DIGEST  :    This bill revises the direct inquiry provisions 
          in the Alcoholic Beverage Control Act to remove the 
          requirement that manufacturers and distributors can only 
          provide consumer information on where they can find a 
          specific product at an on-sale establishment if that 
          on-sale retailer operates and is licensed as a restaurant.  
          By removing that requirement, manufacturers and 
          distributors can add bars to the list they provide 
          consumers of on-sale establishments that serve their 
          specific products.
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                                                               AB 2349
                                                                Page 
          2


           Senate Floor Amendments  of 8/9/12 are technical and 
          requested by the Department of Alcoholic Beverage Control.  
          The amendments (1) strike unnecessary reference to Section 
          25500 of the Business and Professions Code in Section 2 of 
          the bill and (2) strike the word "email" and instead insert 
          the word "e-mail."

           ANALYSIS  :    Existing law prohibits manufacturers and 
          distributors from giving or lending money or anything of 
          value to anyone who operates, owns or maintains any 
          off-sale licensed premise.  However, these licensed 
          entities may list or publish, in response to a direct 
          inquiry from a consumer, the name, address, telephone 
          numbers, e-mail, and web address of two or more retailers 
          who sell their products so long as the retailer operates 
          and is licensed as a restaurant. 

          This bill revises the direct inquiry provisions in existing 
          law to remove the requirement that the unaffiliated on-sale 
          retailer operates and is licensed as a bona fide public 
          eating place.  This change will allow manufacturers and 
          distributors to provide information on both bars and 
          restaurants that serve their alcohol. 

           Related legislation  .  SB 1423 (Chesbro), Chapter 205, 
          Statutes of 2000, authorized wineries and brandy 
          manufacturers to advertise the name and location of 
          restaurants that sell their products.

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

           SUPPORT  :   (Verified  8/10/12)

          California Beer and Beverage Distributors 
          Heimark Distributing, LLC

           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          "Given the development of new social media, a manufacturer 
          or distributor should be allowed to utilize the various 
          social media mediums as a marketing tool to educate a 
          potential customer about additional retail locations where 
          a product can be purchased, not just at restaurants."

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                                                               AB 2349
                                                                Page 
          3



           ASSEMBLY FLOOR  :  73-0, 5/10/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines, 
            Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman, 
            Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, 
            Huber, Hueso, Huffman, Jones, Knight, Lara, Logue, Bonnie 
            Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, 
            Monning, Morrell, Nestande, Nielsen, Pan, Perea, 
            Portantino, Silva, Skinner, Smyth, Solorio, Swanson, 
            Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, 
            John A. Pérez
          NO VOTE RECORDED:  Cook, Fletcher, Furutani, Jeffries, 
            Norby, Olsen, V. Manuel Pérez


          DLW:k  8/13/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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