BILL NUMBER: SB 1531	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 23, 2012
	PASSED THE ASSEMBLY  AUGUST 22, 2012
	AMENDED IN ASSEMBLY  AUGUST 20, 2012
	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, 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.


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) A holder of a winegrower's license whose licensed
premises of production are located within the 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 or monetary contribution 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) Except as provided in paragraph (6), donated wine shall not be
used or sold by the permanent retail licensee and a monetary
contribution shall not be used in or for the benefit of the permanent
retail on-sale 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.
   (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.
   (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.
   (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.