Amended in Assembly May 15, 2013

Amended in Assembly April 17, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 933

Introduced by Assembly Members Skinner and Hall

February 22, 2013

An act to amend Section 23363.1 of, and to add Section 23363.3 to, the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

AB 933, as amended, Skinner. Distilled spirits manufacturers: licenses: tastings.

Existing law, the Alcoholic Beverage Control Act, authorizes a licensed distilled spirits manufacturer to conduct tastings of distilled spirits produced or bottled by, or produced or bottled for, the licensee, on the licensed premises, under specified conditions. Existing law generally prohibits a manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, or wholesaler from, among other things, giving or lending any money or other thing of value, directly or indirectly, to any person engaged in operating, owning, or maintaining any off-sale licensed premises. Existing law excepts from this prohibition the listing of names, addresses, telephone numbers, and e-mail addresses, among other things, if specified conditions are met. Existing law provides that a violation of the act is a misdemeanor unless otherwise specified.

This bill would revise the conditions upon which a distilled spirits manufacturer may conduct tastings, authorize a licensed distilled spirits manufacturer to charge consumers for tastings on its licensed premises, and would impose additional conditions on the provision of tastings by the licensee on the licensed premises. The bill would include in these conditions that tastings of distilled spirits not exceed begin delete an unspecified end delete begin insert a specified end insert amount and be limited to begin delete an unspecified number of end delete begin insert 4 end insert tastes to be provided to an individual per day. begin delete The bill would permit a distilled spirits manufacturer, under specified conditions, for tastings conducted at a licensee’s premises, to display or provide to individuals a listing of the names, addresses, telephone numbers, e-mail addresses, or Internet Web site addresses, of two or more unaffiliated off-sale retailers selling their products. end delete

The bill would also extend the authorization to conduct tastings, as described above, to brandy manufacturers.

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.

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

The Legislature finds and declares that a tasting
of distilled spirits or brandy is a presentation of samples of one
or more distilled spirits or brandies, representing one or more
distilled spirits or brandy manufacturers, to a group of consumers
for the purpose of acquainting the tasters with the characteristics
of the distilled spirits or brandy tasted.

end insert

begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

Section 23363.1 of the Business and Professions Code
is amended to read:

23363.1.  

(a) A distilled spirits manufacturer’s license
authorizes the licensee to conduct tastings of distilled spirits
produced or bottled by, or produced or bottled for, the licensee,
on or off the licensee’s premises.

(b) (1) Distilled spirits tastings may be conducted by the
licensee off the licensee’s premises only for an event sponsored
by a nonprofit organization. A distilled spirits manufacturer shall
not sell or solicit sales of distilled spirits at such event. The
sponsoring organization shall first obtain a permit begin delete form end delete begin insert from end insert the
department.

(2) For purposes of this subdivision, “nonprofit organization”
does not include any community college or other institution of
higher learning, as defined in the Education Code, nor does it
include any officially recognized club, fraternity, or sorority,
whether or not that entity is located on or off the institution’s
campus.

(c) Tastings on the licensee’s premises shall be subject to the
following conditions:

(1) Tastings of distilled spirits shall not exceed begin delete ____ end delete begin insert one-fourth
of one ounce end insert and shall be limited to no more than begin delete ____ end delete begin insert four end insert tastes
per individual per day.

(2) Tastings shall only include the products that are authorized
to be begin delete sold by end delete begin insert produced or bottled by or for end insert the licensee.

(3) A person under 21 years of age shall not serve tastes of
distilled spirits.

(d) Notwithstanding Section 25600, the licensee may provide
distilled spirits without charge for any tastings conducted pursuant
to this section. The licensee may charge for tastings conducted by
the licensee on its licensed premises.

begin delete

(e) Notwithstanding Section 25500, for tastings conducted at a
licensee’s premises, a distilled spirits manufacturer may display
or provide to individuals a listing of the names, addresses,
telephone numbers, e-mail addresses, or Internet Web site
addresses, of two or more unaffiliated off-sale retailers selling
their products. This action shall not constitute a thing of value or
prohibited inducement to the listed off-sale retailer, provided all
of the following conditions are met:

end delete begin delete

(1) The listing does not also contain the retail price of the
product.

end delete begin delete

(2) The listing is the only reference to the off-sale retailers
displayed or provided.

end delete begin delete

(3) The listing does not refer only to one off-sale retailer or only
to off-sale retail establishments controlled directly or indirectly
by the same off-sale retailer.

end delete begin delete

(4) The listing is made by, or produced by, or paid for,
exclusively by the distilled spirits manufacturer.

end delete begin delete

(f) The department may adopt rules and regulations as it
determines to be necessary for the administration of this section.

end delete

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

Section 23363.3 is added to the Business and
Professions Code, to read:

23363.3.  

(a) A brandy manufacturer’s license authorizes the
licensee to conduct tastings of brandy produced or bottled by, or
produced or bottled for, the licensee, on or off the licensee’s
premises.

(b) (1) A brandy manufacturer shall not sell or solicit sales of
brandy at the event. The sponsoring organization shall first obtain
a permit from the department.

(2) For purposes of this subdivision, “nonprofit organization”
does not include any community college or other institution of
higher learning, as defined in the Education Code, nor does it
include any officially recognized club, fraternity, or sorority,
whether or not that entity is located on or off the institution’s
campus.

(c) Tastings on the licensee’s premises shall be subject to the
following conditions:

(1) Tastings of brandy shall not exceed begin delete ____ end delete begin insert one-fourth of one
ounce end insert and shall be limited to no more than begin delete ____ end delete begin insert four end insert tastes per
individual per day.

(2) Tastings shall only include the products that are authorized
to be begin delete sold by end delete begin insert produced or bottled by or for end insert the licensee.

(3) A person under 21 years of age shall not serve tastes of
brandy.

(d) Notwithstanding Section 25600, the licensee may provide
brandy without charge for any tastings conducted pursuant to this
section. The licensee may charge for tastings conducted by the
licensee on its licensed premises.

begin delete

(e) Notwithstanding Section 25500, for tastings conducted at a
licensee’s premises, a brandy manufacturer may display or provide
to individuals a listing of the names, addresses, telephone numbers,
e-mail addresses, or Internet Web site addresses of two or more
unaffiliated off-sale retailers selling its products. This action shall
not constitute a thing of value or prohibited inducement to the
listed off-sale retailer, provided all of the following conditions are
met:

(1) The listing does not also contain the retail price of the
product.

(2) The listing is the only reference to the off-sale retailers
displayed or provided.

(3) The listing does not refer only to one off-sale retailer or only
to off-sale retail establishments controlled directly or indirectly
by the same off-sale retailer.

(4) The listing is made by, or produced by, or paid for,
exclusively by the brandy manufacturer.

(f) The department may adopt rules and regulations as it
determines to be necessary for the administration of this section.

end delete

begin delete SEC. 3. end delete
begin insert SEC. 4. end insert   

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.

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CORRECTIONS:

Text--Page 2.

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