BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 782|
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CONSENT
Bill No: AB 782
Author: Bocanegra (D)
Amended: 6/19/13 in Senate
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 11-0, 6/25/13
AYES: Wright, Nielsen, Berryhill, Calderon, Cannella, Correa,
De León, Galgiani, Hernandez, Lieu, Padilla
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 70-0, 5/16/13 (Consent) - See last page for
vote
SUBJECT : Alcoholic beverage control: licensees: returns
SOURCE : Author
DIGEST : This bill adds a new provision to the Alcoholic
Beverage Control Act (ABC Act) that authorizes a licensed
caterer who has obtained a caterer's event permit to return
unsold beer to the beer distributor or manufacturer for credit,
thereby eliminating the need for a beer distributor or
manufacturer to continuously exchange out-of-code beer involving
catered events.
ANALYSIS :
Existing law:
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1.Permits the return of beer for errors in delivery, health and
safety recalls and the identical exchange of out-of-code
products.
2.Authorizes a wholesaler or manufacturer of beer to accept the
return of quantities of discontinued or seasonal brands of
beer from a retail licensee, provided that the returned beer
is exchanged for a quantity of beer of a brand produced or
sold by the same manufacturer with a value not greater than
the original sales price to the retail licensee of the
returned beer.
3.Allows an alcoholic beverage licensee to accept the return of
unsold and unopened beer from an organization that obtains a
temporary license. Additionally, the licensee may credit the
account of the organization in an amount not to exceed the
original sales price of the returned beer, provided that the
beer has been paid for in full.
4.Authorizes the Department of Alcoholic Beverage Control (ABC)
to issue special licenses for the sale of beer or wine on a
temporary basis (usually one to three days) for premises
temporarily occupied by the licensee for a picnic, social
gathering, or similar occasion at a fee equal to the actual
cost of issuing the license, but not to exceed $25 per day.
ABC may, in its discretion, issue on a temporary basis a daily
on-sale general license and the fee for such license is $25
per day.
5.Defines an "on-sale" license as authorizing the sale of all
types of alcoholic beverages: namely, beer, wine and distilled
spirits, for consumption on the premises (such as at a
restaurant or bar). An "off-sale" license authorizes the sale
of all types of alcoholic beverages for consumption off the
premises in original, sealed containers.
6.Provides that a violation of any of the provisions of the ABC
Act, for which another penalty or punishment is not
specifically provided, is a misdemeanor.
This bill adds a new provision to the ABC Act that authorizes a
licensed caterer who has obtained a caterer's event permit to
return unsold beer to the beer distributor or manufacturer for
credit, thereby eliminating the need for a beer distributor or
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AB 782
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manufacturer to continuously exchange out-of-code beer involving
catered events. Specifically, this bill:
1.Permits an on-sale retail licensee, that purchases beer for
sale at an event for which a caterer's event permit has been
issued by the ABC, to return the unused and unopened beer to
the original selling licensee at the conclusion of the catered
event or upon expiration of the catering authorization
provided the beer was purchased for use or sale only at the
event and the on-sale retail licensee does not also provide
any beer for use or sale at the event from its permanent
licensed premises.
2.Requires the on-sale retail licensee holding the catering
authorization to record and maintain a record of the inventory
of all unused and unopened beer to be returned at the
conclusion of the catering event.
3.Requires the original selling licensee to prepare an invoice
of the returned beer that references the original sales
invoice and also provide the on-sale retail licensee holding
the catering authorization a copy of the invoice.
4.Makes it explicit that any beer returned must be delivered to
the original selling licensee at the conclusion of the catered
event or upon expiration of the catering authorization.
5.Permits the original selling licensee to credit the account of
the on-sale retail licensee in an amount not to exceed the
original sales price of the returned beer, provided the beer
has been paid for in full.
Background
The author's office points out that oftentimes it is difficult
to estimate the amount of beer that will be consumed at an
event, which can lead to a situation whereby a caterer has
overestimated the amount of beer needed for any particular event
and is left with an excess of stock. If the caterer cannot sell
the beer at future events or at its permanently licensed premise
and the beer expires or goes "out-of-code," the distributor or
manufacturer must exchange the out-of-code beer for fresh beer
and bear the cost of fresh inventory and also pay to have the
out-of-code beer destroyed.
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 7/18/13)
California Beer and Beverage Distributors
ARGUMENTS IN SUPPORT : According to the author's office, only
specified holders of permanent retail licenses are able to
acquire a caterer's permit. Due to the fact that they are
holders of permanent retail licenses, they are ineligible to
return unsold and unopened beer to an alcoholic beverage
licensee and have their account credited. This bill is intended
to allow a caterer to return unsold and unopened beer to a beer
distributor or manufacturer for credit.
ASSEMBLY FLOOR : 70-0, 5/16/13
AYES: Achadjian, Alejo, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown, Ian
Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,
Dahle, Daly, Dickinson, Donnelly, Fong, Fox, Frazier, Garcia,
Gatto, Gomez, Gordon, Gorell, Gray, Hagman, Hall, Harkey,
Roger Hernández, Jones, Jones-Sawyer, Levine, Linder, Logue,
Lowenthal, Maienschein, Mansoor, Medina, Mitchell, Mullin,
Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea,
V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,
Ting, Torres, Wagner, Waldron, Weber, Wieckowski, Wilk,
Williams, Yamada, John A. Pérez
NO VOTE RECORDED: Allen, Buchanan, Eggman, Beth Gaines, Grove,
Holden, Melendez, Morrell, Stone, Vacancy
MW:ej 8/12/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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