BILL ANALYSIS Ó
AB 782
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CONCURRENCE IN SENATE AMENDMENTS
AB 782 (Bocanegra)
As Amended June 19, 2003
Majority vote
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|ASSEMBLY: |70-0 |(May 16, 2013) |SENATE: |38-0 |(August 15, |
| | | | | |2013) |
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Original Committee Reference: G.O.
SUMMARY : Adds a provision to the Alcoholic Beverage Control Act
(ABC Act) to permit an on-sale retail licensee that obtained a
caterer's permit to return unused and unopened beer, purchased
for sale at the catered event, to the original selling licensee,
as specified.
The Senate amendments :
1)Permit 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 Department of Alcoholic Beverage Control (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, as defined.
2)Require 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)Require the original selling licensee to prepare an invoice of
the returned beer that references the original sales invoice,
as described.
4)Make 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. The
original selling licensee may credit the account of the
on-sale retail licensee in an amount not to exceed the
original sales price of the returned beer, as defined.
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 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. Also, under existing law, ABC may, in its
discretion, issue on a temporary basis a daily on-sale general
license and the fee for such license shall be $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 its provisions for which
another penalty or punishment is not specifically provided is
a misdemeanor.
AS PASSED BY THE ASSEMBLY , this bill added a new provision to
the ABC Act that permits the return of unsold and unopened beer
from an organization that obtained a temporary license.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
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COMMENTS : This bill, as amended in the Senate is consistent
with Assembly actions.
Purpose of the bill : 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 measure is
intended to allow a caterer to return unsold and unopened beer
to a beer distributor or manufacturer for credit.
The author's office points out that often times 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.
Prior legislation : SB 1393 (Negrete McLeod), Chapter 163,
Statutes of 2012. Allowed an alcoholic beverage licensee to
accept the return of unsold and unopened beer from organizations
that obtain a particular license, as specified, and allowed the
return of beer that is recalled or that is considered to present
a health and safety issue by the manufacturer, importer, or
governmental entity if distributed, offered for sale, or sold in
the state. Also, allowed for the exchange of beer or a credit
memorandum.
SB 487 (Negrete McLeod) of 2011. Would have added a new
provision to the ABC Act authorizing the return of unsold and
unopened beer from an organization that obtained a temporary
license. This bill was held in the Assembly Governmental
Organization (G.O.) Committee at the author's request.
AB 3071 (Governmental Organization Committee), Chapter 508,
Statutes of 2008. Among other things, authorized beer that is
recalled for health or safety issues to be accepted for return
at any time from a retailer and be picked up by the seller of
beer. Also, permitted the seller of beer to exchange the
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returned beer for identical product, issue a deferred exchange
memorandum showing the beer was picked-up and is to be replaced
when inventory is available, or issue a credit to the retailer
for the returned beer.
SB 1035 (Perata), Chapter 657, Statutes of 2001. Allowed a
person in possession of a stock of lawfully acquired alcoholic
beverages following the revocation or voluntary surrender of, or
failure to renew, an alcoholic beverage license to sell that
stock to licensees, as authorized by the Department of ABC.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0001704