AB 782, as amended, Bocanegra. Alcoholic beverage control: licensees: returns.
Under the Alcoholic Beverage Control Act, a wholesaler or manufacturer may accept the return of beer from a retailer only if the beer is returned in exchange for the identical quantity and brand of beer. Existing law provides for exceptions to that provision, including permitting the return of beer from a seasonal or temporary licensee or an annual licensee operating on a temporary basis, permitting the return of unsold and unopened beer from an organization that obtained a specified temporary license, and permitting the return of beer that is recalled or presents a health and safety issue as provided.
This bill would add to the above exceptions, to permitbegin delete a wholesaler or manufacturer to accept the return of unsold and unopened beer from an organizationend deletebegin insert
an on-sale retail licenseeend insert that obtained a caterer’s permitbegin delete or an event permit,end deletebegin insert to return unused and unopened beer, purchased for sale at the catered event, to the original selling licensee,end insert as specified.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 23104.2 of the Business and Professions
2Code is amended to read:
(a) Subject to the exceptions specified in subdivision
4(b), a retail licensee may return beer to the wholesaler or
5manufacturer from whom the retail licensee purchased the beer,
6or any successor thereto, and the wholesaler, manufacturer, or
7successor thereto may accept that return if the beer is returned in
8exchange for the identical quantity and brand of beer. No
9wholesaler or manufacturer, or any successor thereto, shall accept
10the return of any beer from a retail licensee except when the beer
11delivered was not the brand or size container ordered by the retail
12licensee or the amount delivered was other than the amount
13ordered, in which case the order may be corrected by the wholesaler
14or manufacturer who sold the beer, or any successor thereto. If
a
15package had been broken or otherwise damaged prior to or at the
16time of actual delivery, a credit memorandum may be issued for
17the returned package by the wholesaler or manufacturer who sold
18the beer, or any successor thereto, in lieu of exchange for an
19identical package when the return and corrections are completed
20within 15 days from the date the beer was delivered to the retail
21licensee.
22(b) Notwithstanding subdivision (a), a wholesaler or
23manufacturer, or any successor thereto, may accept the return of
24beer purchased from that wholesaler, manufacturer, or successor
25thereto, as follows:
26(1) (A) From a seasonal or temporary licensee if at the
27termination of the period of the license the seasonal or temporary
28licensee has beer remaining unsold,
or from an annual licensee
29operating on a temporary basis if at the termination of the
30temporary period the annual licensee has beer remaining unsold.
31(B) For purposes of subparagraph (A), an annual licensee shall
32be considered to be operating on a temporary basis if he or she
33operates at seasonal resorts, including summer and winter resorts,
34or at sporting or entertainment facilities, including racetracks,
35arenas, concert halls, and convention centers. Temporary status
36shall be deemed terminated when operations cease for 15 days or
37more. No wholesaler or manufacturer, or successor thereto, shall
38accept the return of beer from an annual licensee considered to be
P3 1operating on a temporary basis unless the licensee notifies that
2wholesaler or manufacturer, or successor thereto, within 15 days
3of the date the licensee’s operations ceased.
4(2) (A) Subject to subparagraph (B), a wholesaler or
5manufacturer, or any successor thereto, may, with department
6approval, accept the return of a brand of beer discontinued in a
7
California market area or a seasonal brand of beer from a retail
8licensee, provided that the beer is exchanged for a quantity of beer
9of a brand produced or sold by the same manufacturer with a value
10no greater than the original sales price to the retail licensee of the
11returned beer. For purposes of this subparagraph, “seasonal brand
12of beer” means a brand of beer, as defined in Section 23006, that
13is brewed by a manufacturer to commemorate a specific holiday
14season and is so identified by appropriate product packaging and
15labeling.
16(B) A discontinued brand of beer may not be reintroduced for
17a period of 12 months in the same California market area in which
18a return and exchange of that beer as described in subparagraph
19(A) has taken place. A seasonal brand of beer may not be
20reintroduced for a period of six months in the
same California
21market area in which a return and exchange of that beer as
22described in subparagraph (A) has taken place.
23(c) Notwithstanding subdivision (a), a wholesaler or
24manufacturer, or any successor thereto, may accept the return of
25beer purchased from that wholesaler or manufacturer, or any
26successor thereto, by the holder of a retail license following the
27revocation of, suspension of, voluntary surrender of, or failure to
28renew the retail license.
29(d) A wholesaler or manufacturer, or any successor thereto, may
30credit the account of the retailer identified in subdivision (c) in an
31amount not to exceed the original sales price to the retailer of the
32returned beer, provided that the beer has been paid for in full.
33(e) Notwithstanding the 15-day time limit for the return of beer
34described in subdivision (a), beer that is recalled or that is
35considered by a manufacturer, importer, or governmental entity
36to present health or safety issues if distributed, offered for sale, or
37sold in the state may be accepted for return at anytime from a
38retailer and be picked up by the seller of beer. The seller of beer
39may exchange the returned beer for identical product, if safe
40inventory is available, issue a deferred exchange memorandum
P4 1showing the beer was picked up and is to be replaced when
2inventory is available, or issue a credit memorandum to the retailer
3for the returned beer. The seller of beer may exchange with the
4manufacturer or importer the returned beer and the seller of beer’s
5inventory that was recalled or considered to present health or safety
6issues for identical product, if safe inventory is
available, or the
7seller of beer shall receive a refund from or be issued a credit
8memorandum by the manufacturer or importer for the returned
9beer and seller of beer’s inventory that was recalled or considered
10to present health or safety issues.
11(f) Notwithstanding subdivision (a), a licensee may accept the
12return of unsold and unopened beer from an organization that
13obtained a temporary license pursuant to Section 24045 orbegin delete 24045.1,
14or a caterer’s permit or an event permit pursuant to Section 23399end delete
15begin insert 24045.1end insert. The licensee may credit the account of the organization
16begin delete that obtained the temporary license or the caterer’s permit or the
in an amount not to exceed the original sales price
17event permit,end delete
18of the returned beer, provided that the beer has been paid for in
19full.
20(g) (1) Notwithstanding subdivision (a), an on-sale retail
21licensee that purchases beer for sale at an event for which a
22catering authorization is issued by the department pursuant to
23Section 23399 may return the unused and unopened beer to the
24original selling licensee at the conclusion of the catered event or
25upon expiration of the catering authorization, provided the beer
26was purchased for use or sale only at that event and the on-sale
27retail licensee does not also provide any beer for use or sale at
28the event from its permanent licensed premises. The on-sale retail
29licensee holding the catering authorization shall record and
30maintain a record of the inventory of all unused and unopened
31beer to be returned at
the conclusion of the catering event. The
32original selling licensee shall prepare an invoice to reflect the
33returned beer that shall reference the original sales invoice and
34shall provide the on-sale retail licensee holding the catering
35authorization with a copy of the invoice.
36(2) Any beer returned pursuant to this subdivision must be
37returned to the original selling licensee at the conclusion of the
38catered event or upon expiration of the catering authorization.
39The original selling licensee may credit the account of the on-sale
P5 1retail licensee in an amount not to exceed the original sales price
2of the returned beer, provided the beer has been paid for in full.
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