BILL ANALYSIS Ó
Bill No: SB
1393
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
SB 1393 Author: Negrete McLeod
As Introduced: February 24, 2012
Hearing Date: April 10, 2012
Consultant: Art Terzakis
SUBJECT
Alcoholic Beverages: returns
DESCRIPTION
SB 1393 makes the following changes to an existing
provision of the Alcoholic Beverage Control (ABC) Act that
currently allows a manufacturer or wholesaler of beer to
accept the return of recalled beer for health or safety
issues and exchange the beer or credit the retailer.
Specifically, SB 1393:
1.Permits the return of recalled beer 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.
2.Also, allows the seller of beer to 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 issue for identical product
provided safe inventory is available. If safe product is
unavailable then the manufacturer or importer must
provide the seller of beer a refund or a credit
memorandum.
EXISTING LAW
Existing law permits the return of beer for errors in
delivery, health and safety recalls and the identical
exchange of out-of-code products.
SB 1393 (Negrete McLeod) continued
Page 2
Existing law also authorizes a wholesaler or manufacturer
of beer to accept the return of quantities of discontinued
or seasonal brands of beer from a retail licensee, provided
that the returned beer is exchanged for a quantity of beer
of a brand produced or sold by the same manufacturer with a
value not greater than the original sales price to the
retail licensee of the returned beer.
BACKGROUND
According to the author's office, this measure is simply
intended to allow a retailer to return beer that has been
recalled or declared to pose a health and safety threat to
the public by the manufacturer, importer, or governmental
entity, for a full exchange, refund or credit memorandum.
PRIOR/RELATED LEGISLATION
SB 487 (Negrete McLeod) 2011-12 Session. Would add a new
provision to the ABC Act that permits the return of unsold
and unopened beer from an organization that obtained a
temporary license. (Pending in Assembly G.O. Committee)
AB 517 (Hall) 2011-12 Session. Identical to SB 487
(Negrete McLeod). (Senate Inactive File)
SB 192 (Negrete McLeod) 2009-10 Session. Identical to SB
487 of 2011. (Gutted in the Assembly - California
Firefighter Joint Apprenticeship Program - in late August
and held in Rules Committee) Senate G.O. vote on 4/14/09
(13-0); floor vote on 4/20/09 (37-0).
AB 3071 (Assembly G.O. Committee) Chapter 508, Statutes of
2008. Among other things, authorized beer that is recalled
for health or safety issues to be accepted for return at
any time from a retailer and be picked up by the seller of
beer. Also, permitted the seller of beer to exchange the
returned beer for identical product, issue a deferred
exchange memorandum showing the beer was picked-up and is
to be replaced when inventory is available, or issue a
credit to the retailer for the returned beer.
AB 3065 (Assembly G.O. Committee) Chapter 910, Statutes of
2006. Among other things, extended the time frame (from
six weeks to three months) in which a beer manufacturer or
beer wholesaler is authorized to provide assistance to
SB 1393 (Negrete McLeod) continued
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retailers whose equipment, fixtures, or supplies were lost
or damaged as a result of a natural disaster and whose
premises are located in an area proclaimed to be in a state
of disaster by the Governor.
SB 1035 (Perata) Chapter 657, Statutes of 2001. Allowed a
person in possession of a stock of lawfully acquired
alcoholic beverages following the revocation or voluntary
surrender of, or failure to renew, an alcoholic beverage
license to sell that stock to licensees, as authorized by
the Department of ABC.
SB 452 (Maddy) Chapter 273, Statutes of 1998. Among other
things, authorized a wholesaler or manufacturer of beer to
accept the return of discontinued or seasonal brands of
beer from a retail licensee, provided that the returned
beer is exchanged for a quantity of beer of a brand
produced or sold by the same manufacturer with a value not
greater than the original sales price to the retail
licensee of the returned beer.
SUPPORT: California Beer & Beverage Distributors (sponsor)
OPPOSE: None on file as of April 6, 2012
FISCAL COMMITTEE: No
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