BILL NUMBER: SB 1531	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 6, 2012
	AMENDED IN ASSEMBLY  JULY 5, 2012
	AMENDED IN ASSEMBLY  JUNE 20, 2012
	AMENDED IN SENATE  APRIL 16, 2012

INTRODUCED BY   Senator Wolk

                        FEBRUARY 24, 2012

   An act to add and repeal Section 25503.32 of the Business and
Professions Code, relating to alcoholic beverages.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1531, as amended, Wolk. Alcoholic beverages: tied-house
restrictions: opera houses.
   The Alcoholic Beverage Control Act contains limitations on sales
commonly known as "tied-house" restrictions, which generally prohibit
a manufacturer, winegrower, manufacturer's agent, California
winegrower's agent, rectifier, bottler, importer, or wholesaler from
furnishing, giving, or lending any money or other thing of value to
any person engaged in operating, owning, or maintaining any on-sale
licensed premises. Existing law authorizes specific exceptions to
this prohibition, including exceptions for donations to nonprofit
corporations.
   This bill would additionally authorize, until January 1, 2018,
donations of wine  and monetary contributions  by specified
winegrowers to an opera house under specified conditions, as
provided. This bill would make findings regarding the need for
special legislation.
   The Alcoholic Beverage Control Act provides that a violation of
any of its provisions for which another penalty or punishment is not
specifically provided is a misdemeanor. This bill would expand
existing crimes by imposing additional requirements on a licensee
under the act, thus, the bill would impose a state-mandated local
program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 25503.32 is added to the Business and
Professions Code, to read:
   25503.32.  (a)  Notwithstanding any other provision of
this division, a   A  holder of a winegrower's
license whose licensed premises of production are located within the
 County of Napa   Counties of Lake, Mendocino,
Napa, or Sonoma  may donate wine  and make monetary
contributions  to an opera house, if all of the following
conditions are met:
   (1) The opera house is a nonprofit charitable corporation or
association exempt from payment of income taxes under the provisions
of the Internal Revenue Code of the United States and Chapter 4
(commencing with Section 23701) of Part 11 of Division 2 of the
Revenue and Taxation Code.
   (2) The opera house has been incorporated in the City and County
of Napa and produces not less than 150 events open to the general
public per year.
   (3) The opera house holds a  permanent  retail on-sale
license.
   (4) The donation shall not be conditioned directly or indirectly,
in any way, on the purchase, sale, or distribution of any alcoholic
beverage manufactured or distributed by the holder of a winegrower's
license by the opera house. 
   (5) Donated wine shall not be used on the licensed premises or for
the benefit of the opera house's retail on-sale licensee.

   (b) The on-sale retail licensee may sell the donated wine and
shall sell or serve other brands of wine in addition to brands
produced or marketed by the donating winegrower.  
   (5) Except as provided in paragraph (6), donated wine shall not be
used or sold by the permanent retail licensee.  
   (6) Donated wine may only be used or sold in connection with
fundraising activities held on or off the permanent licensed
premises. Fundraising activities held on the licensed premises during
which donated wine is used or sold shall not take place in
conjunction with any performance at the opera house or while the
permanent retail licensee is exercising its license privileges and
shall only be conducted pursuant to a temporary license issued by the
department.  
   (c) 
    (b)  The opera house may acknowledge and thank a
donating winegrower in the opera house's event programs, on the opera
house's Internet Web site, and on stage  at the permanent
licensed premises  during an event. 
   (d) The donated wine may be used or sold in connection with
fundraising events conducted by the opera house off the licensed
premises.  
   (e) 
    (c)  The Legislature finds that it is necessary and
proper to require a separation between manufacturing interests,
wholesale interests, and retail interests in the production and
distribution of alcoholic beverages in order to prevent suppliers
from dominating local markets through vertical integration and to
prevent excessive sales of alcoholic beverages produced by overly
aggressive marketing techniques. The Legislature further finds that
the exceptions established by this section to the general prohibition
against tied interests must be limited to their express terms so as
not to undermine the general prohibition, and intends that this
section be construed accordingly. 
   (f) 
    (d)  This section shall remain in effect only until
January 1, 2018, and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2018, deletes or
extends that date.
  SEC. 2.  The Legislature finds and declares that, because of the
unique circumstances, and the cultural importance of the Napa Valley
Opera House, a statute of general applicability cannot be enacted
within the meaning of subdivision (b) of Section 16 of Article IV of
the California Constitution, and, therefore, this special statute is
necessary.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.