BILL NUMBER: SB 1393 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Negrete McLeod
FEBRUARY 24, 2012
An act to amend Section 23104.2 of the Business and Professions
Code, relating to alcoholic beverages.
LEGISLATIVE COUNSEL'S DIGEST
SB 1393, as introduced, Negrete McLeod. Alcoholic beverage
control: licensees: returns.
Existing law allows a seller of beer to accept the return of
recalled beer, and either exchange the beer or credit the retailer,
as provided.
This bill would revise this provision to allow the return of beer
that is recalled or that is considered to present a health and safety
issue by the manufacturer, importer, or governmental entity if
distributed, offered for sale, or sold in the state, and would allow
for the exchange of beer or a credit memorandum.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 23104.2 of the Business and Professions Code is
amended to read:
23104.2. (a) Subject to the exceptions specified in subdivision
(b), a retail licensee may return beer to the wholesaler or
manufacturer from whom the retail licensee purchased the beer, or any
successor thereto, and the wholesaler, manufacturer, or successor
thereto may accept that return if the beer is returned in exchange
for the identical quantity and brand of beer. No wholesaler or
manufacturer, or any successor thereto, shall accept the return of
any beer from a retail licensee except when the beer delivered was
not the brand or size container ordered by the retail licensee or the
amount delivered was other than the amount ordered, in which case
the order may be corrected by the wholesaler or manufacturer who sold
the beer, or any successor thereto. If a package had been broken or
otherwise damaged prior to or at the time of actual delivery, a
credit memorandum may be issued for the returned package by the
wholesaler or manufacturer who sold the beer, or any successor
thereto, in lieu of exchange for an identical package when the return
and corrections are completed within 15 days from the date the beer
was delivered to the retail licensee.
(b) Notwithstanding subdivision (a), a wholesaler or manufacturer,
or any successor thereto, may accept the return of beer purchased
from that wholesaler, manufacturer, or successor thereto, as follows:
(1) (A) From a seasonal or temporary licensee if at the
termination of the period of the license the seasonal or temporary
licensee has beer remaining unsold, or from an annual licensee
operating on a temporary basis if at the termination of the temporary
period the annual licensee has beer remaining unsold.
(B) For purposes of subparagraph (A), an annual licensee shall be
considered to be operating on a temporary basis if he or she operates
at seasonal resorts, including summer and winter resorts, or at
sporting or entertainment facilities, including racetracks, arenas,
concert halls, and convention centers. Temporary status shall be
deemed terminated when operations cease for 15 days or more. No
wholesaler or manufacturer, or successor thereto, shall accept the
return of beer from an annual licensee considered to be operating on
a temporary basis unless the licensee notifies that wholesaler or
manufacturer, or successor thereto, within 15 days of the date the
licensee's operations ceased.
(2) (A) Subject to subparagraph (B), a wholesaler or manufacturer,
or any successor thereto, may, with department approval, accept the
return of a brand of beer discontinued in a California market area or
a seasonal brand of beer from a retail licensee, provided that the
beer is exchanged for a quantity of beer of a brand produced or sold
by the same manufacturer with a value no greater than the original
sales price to the retail licensee of the returned beer. For purposes
of this subparagraph, "seasonal brand of beer" means a brand of
beer, as defined in Section 23006, that is brewed by a manufacturer
to commemorate a specific holiday season and is so identified by
appropriate product packaging and labeling.
(B) A discontinued brand of beer may not be reintroduced for a
period of 12 months in the same California market area in which a
return and exchange of that beer as described in subparagraph (A) has
taken place. A seasonal brand of beer may not be reintroduced for a
period of six months in the same California market area in which a
return and exchange of that beer as described in subparagraph (A) has
taken place.
(c) Notwithstanding subdivision (a), a wholesaler or manufacturer,
or any successor thereto, may accept the return of beer purchased
from that wholesaler or manufacturer, or any successor thereto, by
the holder of a retail license following the revocation of,
suspension of, voluntary surrender of, or failure to renew the retail
license.
(d) A wholesaler or manufacturer, or any successor thereto, may
credit the account of the retailer identified in subdivision (c) in
an amount not to exceed the original sales price to the retailer of
the returned beer, provided that the beer has been paid for in full.
(e) Notwithstanding the 15-day time limit for the return of beer
described in subdivision (a), beer that is recalled for
or that is considered by a manufacturer, importer, or
governmental entity to present health or safety issues if
distributed, offered for sale, or sold in the state may be
accepted for return at anytime from a retailer and be picked up by
the seller of beer. The seller of beer may exchange the returned beer
for identical product, if safe inventory is available, issue a
deferred exchange memorandum showing the beer was picked up and is to
be replaced when inventory is available, or issue a credit
memorandum to the retailer for the returned beer. The seller of
beer may exchange with the manufacturer or importer the returned beer
and the seller of beer's inventory that was recalled or considered
to present health or safety issues for identical product, if safe
inventory is available, or the seller of beer shall
receive a refund from or be issued a credit memorandum by the
manufacturer or importer for the returned beer and seller of beer's
inventory that was recalled or considered to present health or safety
issues.