BILL NUMBER: AB 520 CHAPTERED
BILL TEXT
CHAPTER 777
FILED WITH SECRETARY OF STATE SEPTEMBER 29, 2014
APPROVED BY GOVERNOR SEPTEMBER 29, 2014
PASSED THE SENATE AUGUST 14, 2014
PASSED THE ASSEMBLY AUGUST 18, 2014
AMENDED IN SENATE FEBRUARY 11, 2014
AMENDED IN ASSEMBLY JANUARY 6, 2014
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, 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 tasting events regarding wine or distilled spirits at
on-sale retail licensed premises and would place additional
restrictions on the instructional tasting 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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25503.5 of the Business and Professions Code is
amended to read:
25503.5. (a) A winegrower, beer manufacturer, or a beer and wine
wholesaler may, without charge, instruct licensees and their
employees, or conduct courses of instruction for licensees and their
employees, on the subject of wine or beer, including, but not limited
to, the history, nature, values, and characteristics of wine or
beer, the use of wine lists, and the methods of presenting and
serving wine or beer. The winegrower, beer manufacturer, or beer and
wine wholesaler may furnish wine or beer and the equipment,
materials, and utensils that may be required for use in connection
with the instruction or courses of instruction.
(b) A distilled spirits manufacturer, distilled spirits
manufacturer's agent, distilled spirits general rectifier, or
distilled spirits general importer may, without charge, instruct
licensees and their employees, or conduct courses of instruction for
licensees and their employees, on the subject of distilled spirits,
including, but not limited to, the history, nature, values, and
characteristics of distilled spirits, and the methods of presenting
and serving distilled spirits. The distilled spirits manufacturer or
distilled spirits manufacturer's agent may furnish distilled spirits
and the equipment, materials, and utensils that may be required for
use in connection with the instruction or courses of instruction.
(c) The instruction or courses of instruction, authorized in
subdivision (a) or (b), may be given at the premises of the
winegrower, beer manufacturer, beer and wine wholesaler, distilled
spirits manufacturer, distilled spirits manufacturer's agent,
distilled spirits general rectifier, distilled spirits general
importer, or of a licensee, including an on-sale retail licensee, or
elsewhere.
SEC. 2. Section 25503.57 is added to the Business and Professions
Code, to read:
25503.57. (a) (1) An authorized licensee, or its designated
representative, may instruct consumers at an on-sale retail licensed
premises authorized to sell its product with the permission of the
retail on-sale licensee. The instruction may include, without
limitation, the history, nature, values, and characteristics of the
wine or distilled spirits and the methods of presenting and serving
the wine or distilled spirits.
(2) The instruction of consumers may include the furnishing of not
more than three tastings to any individual in one day. A single
tasting of distilled spirits may not exceed one-fourth of one ounce
and a single tasting of wine may not exceed one ounce.
(3) The authorized licensee, or its designated representative,
shall either supply the wine or distilled spirits to be tasted during
the instructional tasting event or purchase the wine or distilled
spirits from the retail on-sale licensee at the original invoiced
cost.
(4) The authorized licensee, or its designated representative,
shall remove any unfinished alcoholic beverages that were supplied by
the authorized licensee, or its designated representative, following
the instruction.
(5) Nothing in this subdivision shall limit the giving away of
samples pursuant to subdivision (a) of Section 23386.
(b) For purposes of this section, "authorized licensee" means a
winegrower, California winegrower's agent, beer and wine importer
general, beer and wine wholesaler, wine rectifier, distilled spirits
manufacturer, distilled spirits manufacturer's agent, distilled
spirits importer general, distilled spirits rectifier, distilled
spirits general rectifier, rectifier, out-of-state distilled spirits
shipper's certificate holder, distilled spirits wholesaler, brandy
manufacturer, brandy importer, or California brandy wholesaler.
"Authorized licensee" shall not include any person that solely holds
a combination of a beer and wine wholesaler license and an off-sale
beer and wine retail license or holds those licenses solely in
combination with any license not listed in this paragraph, or in
combination with a beer and wine importer general license, or holds a
limited off-sale retail wine license.
(c) Except as otherwise provided in this division or by the rules
of the department, no premium, gift, free goods, or other thing of
value shall be given away by an authorized licensee or its designated
representative in connection with an instructional tasting event
conducted pursuant to this section that includes tastings of wine or
distilled spirits.
(d) (1) In addition to any point-of-sale advertising or other
advertising items allowed under this division or under rules of the
department, an authorized licensee or its designated representative,
in his or her absolute discretion and with permission of the retail
on-sale licensee upon whose premises the instructional tasting event
will be held, may list in an advertisement to the general public the
name and address of the on-sale retail licensee, the names of the
wines or distilled spirits being featured at the instructional
tasting event, and the time, date, and location of, and other
information about, the instructional tasting event, provided that
both of the following apply:
(A) The advertisement does not contain the retail price of the
alcoholic beverages.
(B) The listing of the on-sale retail licensee's name and address
is the only reference to the on-sale retail licensee in the
advertisement.
(2) Pictures or illustrations of the on-sale retail licensee's
licensed premises and laudatory references to the on-sale retail
licensee in these advertisements are not authorized. Nothing in this
section shall authorize an authorized licensee or its designated
representative to share in the costs, if any, of the on-sale retail
licensee.
(e) An on-sale retail licensee may advertise an instructional
tasting event to the general public. The costs of this advertising
shall be borne solely by the on-sale retail licensee. Advertising
permitted by this subdivision includes flyers, newspaper ads,
Internet communications, and interior signage.
(f) No more than one authorized licensee or its designated
representative shall conduct an instructional tasting pursuant to
this section at the on-sale retail licensed premises of an on-sale
retail licensee at any time, and a person shall not act as the
designated representative for more than one authorized licensee at
that instructional tasting.
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.