BILL ANALYSIS Ó
AB 2349
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2349 (Nestande)
As Amended August 9, 2012
Majority vote
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|ASSEMBLY: |73-0 |(May 10, 2012) |SENATE: |38-0 |(August 22, |
| | | | | |2012) |
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Original Committee Reference: G.O.
SUMMARY : Revises the direct inquiry provisions in the Alcoholic
Beverage Control Act (Act) to remove the requirement that
manufacturers and distributors can only provide consumer
information 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.
The Senate amendments :
1)Repeal a duplicative tied-house statutory provision pertaining
to the listing of on-sale retailers as not a thing of value.
2)Clarify that the listing of names, addresses, telephone
numbers, or e-mail addresses in other forms of electronic
media does not constitute a thing of value.
3)Make technical and clarifying changes.
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.
This involves licensing individuals and businesses associated
with the manufacture, importation and sale of alcoholic
beverages in this state and the collection of license fees or
occupation taxes for this purpose.
2)Existing law, known as the "tied-house" law, separates the
alcoholic beverage industry into three component parts, or
tiers: manufacturer (including breweries, wineries and
AB 2349
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distilleries), wholesaler, and retailer (both on-sale and
off-sale).
3)Provides that the listing of the names, addresses, telephone
numbers or e-mail addresses, or both, or Internet Web site
addresses, of two or more unaffiliated on-sale retailers
selling beer, wine, or distilled spirits, and operating and
licensed as bona fide public eating places selling the beer,
wine, or distilled spirits produced, distributed, or imported
by a nonretail industry member in response to a direct inquiry
from a consumer, as specified, does not constitute a thing of
value or prohibited inducement to the listed on-sale retailer,
if specified conditions are met.
4)Defines "nonretail industry member" as a manufacturer,
including, but not limited to, a beer manufacturer,
winegrower, or distiller of alcoholic beverages or an agent of
that entity, or a wholesaler, regardless of any other licenses
held directly or indirectly by that person.
AS PASSED BY THE ASSEMBLY , this bill revised the direct inquiry
provisions in the Act to remove the requirement that
manufacturers and distributors can only provide consumer
information where they can find a specific product at an on-sale
establishment if that on-sale retailer operates and is licensed
as a restaurant.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : The author's office notes that current ABC law
prohibits a supplier (manufacturer and distributor) 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, or Web address of two or more retailers who sell their
products so long as the retailer operates and is licensed as a
bona fide public eating place (restaurant).
The author's office states that this measure would revise the
direct inquiry provisions in current law to remove the
requirement that the unaffiliated on-sale retailer operates and
is licensed as a bona fide public eating place. This change is
intended to permit a supplier to list or publish the address,
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telephone number, Web address, etc. of all on-sale retail
locations in response to a direct inquiry from a consumer.
The author's office contends that suppliers often list on a
Facebook fan page or Web site, the different restaurants where a
consumer may purchase their product. Thus, given the
development of new social media, a supplier should be allowed to
utilize the various social media mediums as a marketing tool to
educate consumers about additional retail locations where a
product can be purchased, not just at restaurants.
This bill as amended is consistent with Assembly actions.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0004807