Amended in Senate February 11, 2014

Amended in Assembly January 6, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 520


Introduced by Assembly Member Chesbro

February 20, 2013


An act to amend Section 25503.5 of, and to add Section 25503.57 to, the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

AB 520, as amended, Chesbro. Alcoholic beverages: instruction: tastings.

The Alcoholic Beverage Control Act permits a winegrower or distilled spirits manufacturer, or its authorized agent, to instruct consumers at an on-sale retail licensed premises authorized to sell its product on the subject of wine or distilled spirits, including, but not limited to, the history, nature, values, and characteristics of those beverages, as provided. Existing law authorizes the instruction to include tastings of wine or distilled spirits, subject to limitations on the amounts that may be provided to the consumers. The act provides that a violation of its provisions is a misdemeanor, unless otherwise specified.

This bill would expand the types of licensees that may provide instructional tastings events regarding wine or distilled spirits at on-sale retail licensed premises and would place additional restrictions on the instructional tastings events, including restrictions on the types of advertising that may be conducted prior to the instructional tasting event. By expanding the definition of a crime, this 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:

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SECTION 1.  

Section 25503.5 of the Business and Professions
2Code
is amended to read:

3

25503.5.  

(a) A winegrower, beer manufacturer, or a beer and
4wine wholesaler may, without charge, instruct licensees and their
5employees, or conduct courses of instruction for licensees and
6their employees, on the subject of wine or beer, includingbegin insert,end insert but not
7limited to, the history, nature, values, and characteristics of wine
8or beer, the use of wine lists, and the methods of presenting and
9serving wine or beer. The winegrower, beer manufacturer, or beer
10and wine wholesaler may furnish wine or beer and the equipment,
11materialsbegin insert,end insert and utensils that may be required for use in connection
12with the instruction or courses of instruction.

13(b) A distilled spirits manufacturer, distilled spirits
14manufacturer’s agent, distilled spirits general rectifier, or distilled
15spirits general importer may, without charge, instruct licensees
16and their employees, or conduct courses of instruction for licensees
17and their employees, on the subject of distilled spirits, including,
18but not limited to, the history, nature, values, and characteristics
19of distilled spirits, and the methods of presenting and serving
20distilled spirits. The distilled spirits manufacturer or distilled spirits
21manufacturer’s agent may furnish distilled spirits and the
22equipment, materials, and utensils that may be required for use in
23connection with the instruction or courses of instruction.

24(c) The instruction or courses of instruction, authorized in
25subdivision (a) or (b), may be given at the premises of the
26winegrower, beer manufacturer, beer and wine wholesaler, distilled
27spirits manufacturer, distilled spirits manufacturer’s agent, distilled
28spirits general rectifier, distilled spirits general importerbegin insert,end insert or of a
29licensee, including an on-sale retail licensee, or elsewhere.

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SEC. 2.  

Section 25503.57 is added to the Business and
2Professions Code
, to read:

3

25503.57.  

(a) (1) An authorized licensee, or its designated
4representative, may instruct consumers at an on-sale retail licensed
5premises authorized to sell its product with the permission of the
6retail on-sale licensee. The instruction may include, without
7limitation, the history, nature, values, and characteristics of the
8wine or distilled spirits and the methods of presenting and serving
9the wine or distilled spirits.

10(2) The instruction of consumers may include the furnishing of
11not more than three tastings to any individual in one day. A single
12tasting of distilled spirits may not exceed one-fourth of one ounce
13and a single tasting of wine may not exceed one ounce.

14(3) The authorized licensee, or its designated representative,
15shall either supply the wine or distilled spirits to be tasted during
16the instructional tasting event or purchase the wine or distilled
17spirits from the retail on-sale licensee at the original invoiced cost.

18(4) The authorized licensee, or its designated representative,
19shall remove any unfinished alcoholic beverages that werebegin delete providedend delete
20begin insert suppliedend insert by the authorized licensee, or its designated representative,
21following the instruction.

22(5) Nothing in this subdivision shall limit the giving away of
23samples pursuant to subdivision (a) of Section 23386.

24(b) For purposes of this section, “authorized licensee” means a
25winegrower, California winegrower’s agent, beer and wine importer
26general, beer and wine wholesaler, wine rectifier, distilled spirits
27manufacturer, distilled spirits manufacturer’s agent, distilled spirits
28importer general, distilled spirits rectifier, distilled spirits general
29rectifier, rectifier, out-of-state distilled spirits shipper’s certificate
30holder, distilled spirits wholesaler, brandy manufacturer, brandy
31importer, or California brandy wholesaler. “Authorized licensee”
32shall not includebegin delete an entityend deletebegin insert any personend insert that solely holds a
33 combination of a beer and wine wholesaler license and an off-sale
34beer and wine retail license or holds those licenses solely in
35combination with any license not listed in this paragraph,begin insert or in
36combination with a beer and wine importer general license,end insert
or
37holds a limited off-sale retail winebegin delete license:end deletebegin insert license.end insert

38(c) Except as otherwise provided in this division or by the rules
39of the department, no premium, gift, free goods, or other thing of
40value shall be given away by an authorized licensee or its
P4    1designated representative in connection with an instructional tasting
2event conducted pursuant to this section that includes tastings of
3wine or distilled spirits.

4(d) (1) In addition to any point-of-sale advertising or other
5advertising items allowed under this division or under rules of the
6department, an authorized licensee or its designated representative,
7in his or her absolute discretion and with permission of the retail
8on-sale licensee upon whose premises the instructional tasting
9event will be held, may list in an advertisement to the general
10public the name and address of the on-sale retail licensee, the
11names of the wines or distilled spirits being featured at the
12instructional tasting event, and the time, date, and location of, and
13other information about, the instructional tasting event, provided
14that both of the following apply:

15(A) The advertisement does not contain the retail price of the
16alcoholic beverages.

17(B) The listing of the on-sale retail licensee’s name and address
18is the only reference to the on-sale retail licensee in the
19advertisement.

20(2) Pictures or illustrations of the on-sale retail licensee’s
21licensed premises and laudatory references to the on-sale retail
22licensee in these advertisements are not authorized. Nothing in
23this section shall authorize an authorized licensee or its designated
24representative to share in the costs, if any, of the on-sale retail
25licensee.

26(e) An on-sale retail licensee may advertise an instructional
27tasting event to the general public. The costs of this advertising
28shall be borne solely by the on-sale retail licensee. Advertising
29permitted by this subdivision includes flyers, newspaper ads,
30Internet communications, and interior signage.

begin insert

31(f) No more than one authorized licensee or its designated
32representative shall conduct an instructional tasting pursuant to
33this section at the on-sale retail licensed premises of an on-sale
34retail licensee at any time, and a person shall not act as the
35designated representative for more than one authorized licensee
36at that instructional tasting.

end insert
37

SEC. 3.  

No reimbursement is required by this act pursuant to
38Section 6 of Article XIII B of the California Constitution because
39the only costs that may be incurred by a local agency or school
40district will be incurred because this act creates a new crime or
P5    1infraction, eliminates a crime or infraction, or changes the penalty
2for a crime or infraction, within the meaning of Section 17556 of
3the Government Code, or changes the definition of a crime within
4the meaning of Section 6 of Article XIII B of the California
5Constitution.



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