Amended in Assembly May 1, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 1116


Introduced by Assembly Member Hall

February 22, 2013


An act to amend Section 25600.5 of the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

AB 1116, as amended, Hall. Alcoholic beverages: licensees.

Existing provisions of the Alcoholic Beverage Control Act generally prohibit manufacturers, winegrowers, bottlers, importers, wholesalers, and others from performing certain activities, with specified exceptions. Existing law, until January 1, 2014, permits specified licensees, or any authorized agent of those persons to provide, free of charge, entertainment, food, and distilled spirits, wine, or nonalcoholic beverages to a limited number of consumers over 21 years of age at an invitation-only event, held on specified premises, in connection with the sale or distribution of wine or distilled spirits, as provided.

This bill would authorize the holding of these events on the premises of a licensed hotel, as defined, would expand the number of consumers that may attend these events,begin insert would revise requirements for providing the department with information regarding these events,end insert and wouldbegin delete removeend deletebegin insert extendend insert the repeal date for these provisionsbegin insert until January 2018end insert.

The Alcoholic Beverage Control Act provides that a violation of specified provisions of the act is punishable as a misdemeanor. This bill, by expanding the definition of an existing crime, 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:

P2    1

SECTION 1.  

Section 25600.5 of the Business and Professions
2Code
is amended to read:

3

25600.5.  

Notwithstanding any other provision of this division,
4a manufacturer of distilled spirits, distilled spirits manufacturer’s
5agent, winegrower, rectifier, or distiller, or its authorized unlicensed
6agent, may provide, free of charge, entertainment, food, and
7distilled spirits, wine, or nonalcoholic beverages to consumers at
8an invitation-only event in connection with the sale or distribution
9of wine or distilled spirits, subject to the following conditions:

10(a) No licensee, other than those specified in this section, may
11conduct or participate in any portion of an event authorized by this
12section. A licensee authorized to conduct an event pursuant to this
13section shall not be precluded from doing so on the basis of holding
14any other type of alcoholic beverage license.

15(b) An event authorized by this section shall be conducted on
16 either the:

17(1) Premises for which a caterer’s permit authorization has been
18issued, except that any event held on the premises of a licensed
19winegrower shall not be authorized to provide any distilled spirits
20other than brandy.

21(2) Premises of a licensed hotel, except that any event held on
22the premises of the licensed hotel be held in an area that is not
23open to the general public. For purposes of this paragraph, “hotel”
24means any hotel, motel, resort, bed and breakfast inn, or other
25similar transient lodging establishment, but it does not include any
26residential hotel as defined in Section 50519 of the Health and
27Safety Code.

28(c) Except as provided in paragraph (2) of subdivision (b), an
29event authorized by this section shall not be conducted on premises
30for which a permanent retail license has been issued.

P3    1(d) Except for fair market value payments authorized pursuant
2to this section, a licensed caterer shall not receive any other item
3of value or benefit in connection with events authorized by this
4section.

5(e) The person authorized by this section to provide, free of
6charge, entertainment, food, and beverages shall be present during
7the event.

8(f) The person authorized by this section to provide, free of
9charge, entertainment, food, and beverages shall have sole
10responsibility for providing payment for the entertainment, food,
11beverages, and rental fees at the event. Payments for entertainment,
12food, beverages, and rental fees shall not exceed fair market value.
13No other licensed person shall be authorized, under this section,
14to provide any portion of these payments.

15(g) Requests for attendance at the event shall be by invitation
16sent to consumers over 21 years of age at a specific address via
17mail or e-mail, by telephone, or presented in person. Invitations
18or other advertisements of the event shall not be disseminated by
19any other means. Invitations shall not be sent by the authorized
20person or their authorized unlicensed agent inviting all of the
21employees of a retail licensee or a chain of retail licensees under
22common ownership to an authorized event.

23(h) Attendance at the event shall be limited to consumers who
24receive and accept an invitation to the event. Invited consumers
25may each invite one guest. All attendees shall be over 21 years of
26age. The total number of consumers and their guests allowed at
27any event authorized by this section shall not exceed 600 people.
28Admittance to the event shall be controlled by a list containing the
29names of consumers who accepted the invitation and their guests.
30The persons identified in this section shall be responsible for
31compliance.

32(i) No premium, gift, free goods, or other thing of value may
33be given away in connection with the event, except as authorized
34by this division.

35(j) The duration of any event authorized by this section shall
36not exceed four hours.

37(k) (1) A person authorized to conduct events pursuant to this
38section shall not conduct more than 12 events in a calendar year
39where the consumers and guests in attendance exceed 100 people,
P4    1and not more than 24 events in a calendar year where the
2consumers and guests in attendance is 100 people or fewer.

3(2) The limitation on events authorized by this section shall be
4by person, whether that person holds a single license or multiple
5licenses. If a person holds multiple licenses, the limitation shall
6be applied to the person holding the license, not by type of license.

begin delete

7(l) When applying for a caterer’s permit authorization, the person
8authorized to conduct an event pursuant to this section shall
9include, in addition to any information required by the department,
10all of the following information:

end delete
begin insert

11(l) In addition to any other information required by the
12department, the licensee authorized to conduct an event pursuant
13to this section shall provide the department with all of the following
14information:

end insert

15(1) The name of the company authorized to conduct the event.

16(2) The number of people planned to be in attendance.

17(3) The start and end times for the event.

18(4) The location of the event.

19(m) All alcoholic beverages provided pursuant to this section
20shall be purchased from the holder of the caterer’s permit or the
21licensed hotel, as applicable.

22(n) All alcoholic beverages served at an event authorized by
23this section shall be served in accordance with Sections 25631 and
2425632.

25(o) No person authorized to conduct an event pursuant to this
26section shall hold such an event at the same location more than
27eight times in a calendar year.

28(p) The person authorized to conduct an event under this section
29may provide attendees at the event with a free ride home. The free
30rides shall only constitute free ground transportation to attendees’
31homes or to hotels or motels where attendees are staying.

32(q) In addition to the prescribed fee imposed upon a licensed
33caterer to conduct an event authorized by this section, the
34department may also impose a fee upon a licensee authorized by
35this section to provide, free of charge, entertainment, food, and
36beverages at an authorized event. The fee shall be representative
37of the cost of administering and enforcing the provisions of this
38section, but shall not exceed two hundred dollars ($200) per event.

39(r) The Legislature finds and declares both of the following:

P5    1(1) That it is necessary and proper to require a separation
2between manufacturing interests, wholesale interests, and retail
3interests in the production and distribution of alcoholic beverages
4in order to prevent suppliers from dominating local markets through
5vertical integration and to prevent excessive sales of alcoholic
6beverages produced by overly aggressive marketing techniques.

7(2) Any exception established by the Legislature to the general
8prohibition against tied interests must be limited to the express
9terms of the exception so as to not undermine the general
10prohibitions.

begin insert

11(s) This section shall remain in effect only until January 1, 2018,
12and as of that date is repealed, unless a later enacted statute, that
13is enacted before January 1, 2018, deletes or extends that date.

end insert
14

SEC. 2.  

No reimbursement is required by this act pursuant to
15Section 6 of Article XIII B of the California Constitution because
16the only costs that may be incurred by a local agency or school
17district will be incurred because this act creates a new crime or
18infraction, eliminates a crime or infraction, or changes the penalty
19for a crime or infraction, within the meaning of Section 17556 of
20the Government Code, or changes the definition of a crime within
21the meaning of Section 6 of Article XIII B of the California
22Constitution.



O

    98