BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2349| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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. CONTINUED 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." CONTINUED 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 **** END **** CONTINUED