Amended in Senate August 15, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 636

Introduced by Assembly Member Hall

February 20, 2013

An act to amend Section begin delete 25502.2 end delete begin insert 25503.4 end insert of the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

AB 636, as amended, Hall. Alcoholic beverages: tied-house restrictions.

(1) Existing law, known as tied-house restrictions, prohibits specified licensees from furnishing, giving, or lending money or other things of value, directly or indirectly, to a person engaged in operating, owning, or maintaining an off-sale licensed premises. Existing law permits, until January 1, begin delete 2015 end delete begin insert 2016 end insert , the appearance of a person employed or engaged by an authorized licensee at a promotional event held at the premises of an off-sale retail licensee for the purposes of providing autographs, subject to specified conditions. Existing law generally prohibits a winegrower, a California winegrower’s agent, importer, or other specified parties from providing a licensee alcoholic beverages as a free good as a part of any sale or transaction involving alcoholic beverages or furnishing anything of value to a licensee for specified purposes. Existing law excepts from this prohibition a winegrower, California winegrower’s agent, importer, or other specified parties when conducting or participating in an instructional event for consumers held at a retailer’s premises featuring wines produced by or for the winegrower or imported by the importer, subject to specified conditions. 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 permit begin delete , until January 1, 2015, under specified conditions, the appearance of a person for the purpose of providing autographs at an instructional event for consumers that end delete a winegrower, California winegrower’s agent, importer, or other specified parties begin delete conduct, or participate in, that is held at a retailer’s premises end delete begin insert appearing at an instructional event, as specified, to provide autographs to consumers on consumer advertising specialties given by the person to a consumer or on any item provided by a consumer end insert . The bill would expand the definition of an existing crime, thus imposing a state-mandated local program. begin insert end insert begin insert The bill would also prohibit a requirement of the purchase of any alcoholic beverage in connection with the autographing. end insert

(2) 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:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 25503.4 of the end insert begin insert Business and Professions
Code end insert begin insert is amended to read: end insert

25503.4.  

(a) Notwithstanding any other provision of this
division, a winegrower, California winegrower’s agent, wine
importer, or any director, partner, officer, agent, or representative
of that person, may conduct or participate in, and serve wine at,
an instructional event for consumers held at a retailer’s premises
featuring wines produced by or for the winegrower or, imported
by the wine importer, subject to the following conditions:

(1) No premium, gift, free goods, or other thing of value may
be given away in connection with the instructional event by the
winegrower, California winegrower’s agent, wine importer, or
retailer, except as authorized by this division.

(2) No alcoholic beverages may be given away in connection
with the instructional event except that minimal amounts of wine,
taken from barrels or from tanks, may be supplied and provided
as samples at the instructional event. A person authorized by
subdivision (a) may also provide no more than three one-ounce
tastes of wine per consumer at the instructional event from bottles
of wine provided by the authorized person. For purposes of this
section, minimal amounts of the samples or tastes provided at the
instructional event do not constitute a thing of value. Following
the instructional event, any unused wine provided by the authorized
person shall be removed from the retailer’s premises by the
authorized person.

(3) No alcoholic beverages may be sold at the instructional
event, except that orders for the sale of wine may be accepted by
the winegrower if the sales transaction is completed at the
winegrower’s premises.

begin insert

(b) Notwithstanding Section 25502.2, a person identified in
subdivision (a) appearing at an instructional event described in
subdivision (a) may, in addition to other permitted activities,
provide autographs to consumers on consumer advertising
specialties given by the person to a consumer or on any item
provided by a consumer. No purchase of any alcoholic beverage
shall be required in connection with such autographing.

end insert begin delete

(b)

end delete

begin insert (c) end insert  Notwithstanding any other provision of this division, a
winegrower, California winegrower’s agent, or wine importer, in
advance of an instructional event for consumers being held at a
retailer’s premises, may list in an advertisement the name and
address of the retailer, the names of the wines being featured at
the instructional event, and the time, date, and location of, and
other information about, the instructional event, provided:

(1) The advertisement does not also contain the retail price of
the wines.

(2) The listing of the retailer’s name and address is the only
reference to the retailer in the advertisement and is relatively
inconspicuous in relation to the advertisement as a whole. Pictures
or illustrations of the retailer’s premises and laudatory references
to the retailer in these advertisements are not hereby authorized.

begin delete

(c)

end delete

begin insert (d) end insert  Notwithstanding any other provision of this division, the
name and address of a winegrower, wine importer, or winegrower’s
agent licensee, the brand names of wine being featured, and the
time, date, location, and other identifying information of a wine
promotional lecture at retail premises may be listed in advance of
the event in an advertisement of the off-sale or on-sale retail
licensee.

begin delete

(d)

end delete

begin insert (e) end insert  Nothing in this section authorizes a winegrower, wine
importer, or winegrower’s agent licensee to share in the costs, if
any, of the retailer licensee’s advertisement.

begin delete

(e)

end delete

begin insert (f) end insert  Nothing in this section authorizes any person to consume
any alcoholic beverage on any premises licensed with an off-sale
retail license.

begin delete

SECTION 1.  

Section 25502.2 of the Business and Professions
Code is amended to read:

25502.2.  

(a) A person employed or engaged by an authorized
licensee may appear at a promotional event at the premises of an
off-sale retail licensee, or at an instructional event held at a
retailer’s premises pursuant to Section 25503.4, for the purpose
of providing autographs to consumers at the promotional event
only under the following conditions:

(1) A purchase from the off-sale retail licensee is not required.

(2) A fee is not charged to attend the promotional event.

(3) Autographing may only be provided on consumer advertising
specialities given by the authorized licensee to a consumer or on
any item provided by the consumer.

(4) The promotional event does not exceed four hours in
duration.

(5) There are no more than two promotional events per calendar
year involving the same authorized licensee at a single premises
of an off-sale retail licensee.

(6) The off-sale retail licensee may advertise the promotional
event to be held at its licensed premises.

(7) An authorized licensee may advertise in advance of the
promotional event only in publications of the authorized licensee,
subject to the following conditions:

(A) The advertising only lists the name and address of the
off-sale retail licensee, the name of the alcoholic beverage product
being featured at the promotional event, and the time, date, and
location of the off-sale retail licensee location where the
promotional event is being held.

(B) The listing of the off-sale retail licensee’s name and address
is the only reference to the off-sale retail licensee in the
advertisement and is relatively inconspicuous in relation to the
advertisement as a whole, and the advertisement does not contain
any pictures or illustrations of the off-sale retail licensee’s premises
or laudatory references to the off-sale retail licensee.

(8) A wholesaler does not directly or indirectly underwrite,
share in, or contribute to any costs related to the promotional event,
except that a beer and wine wholesaler that holds at least six
distilled spirits wholesaler licenses may directly or indirectly
underwrite, share in, or contribute to any costs related to a
promotional event for which the wholesaler employs or engages
the person providing autographs to consumers at the promotional
event.

(9) The authorized licensee notifies the department in writing
of the promotional event at least 30 days in advance of the
promotional event.

(10) The authorized licensee maintains records necessary to
establish its compliance with this section.

(b) For purposes of this section, “authorized licensee” means a
manufacturer, winegrower, manufacturer’s agent, California
winegrower’s agent, rectifier, importer, brandy manufacturer,
brandy importer, or wholesaler.

(c) This section shall remain in effect only until January 1, 2016.

end delete

SEC. 2.  

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.