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. Existing law authorizes the Department of Alcoholic Beverage Control to impose a fee of up to $200 on licensees conducting events pursuant to the above-described authorization, as provided.
This bill would authorize the holding of
these events on the premises of abegin delete licensedend delete hotel, as defined, begin insertwould include in the authorization out-of-state distilled spirits shipper’s certificate holders, end insertwould expand the number of consumers that may attend these events, would revise the conditions under which the event may be held, would establish the fee at $200, would revise requirements for providing the department with information regarding these events, and would extend the repeal date for these provisions until January 1, 2018.
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:
Section 25600.5 of the Business and Professions
2Code is amended to read:
Notwithstanding any other provision of this division,
4a manufacturer of distilled spirits, distilled spirits manufacturer’s
5agent, begin insertout-of-state distilled spirits shipper’s certificate holder, end insert
6winegrower, rectifier, or distiller, or its authorized unlicensed
7agent, may provide, free of charge, entertainment, food, and
8distilled spirits, wine, or nonalcoholic beverages to consumers at
9an invitation-only event in connection with the sale or distribution
10of wine or distilled spirits, subject to the following conditions:
11(a) No licensee, other than those specified in this section, may
12conduct or participate in any portion of an
event authorized by this
13section. A licensee authorized to conduct an event pursuant to this
14section shall not be precluded from doing so on the basis of holding
15any other type of alcoholic beverage license.
16(b) An event authorized by this section shall be conducted on
17either the:
18(1) Premises for which a caterer’s authorization has been issued,
19except that any event held on the premises of a licensed winegrower
20shall not be authorized to provide any distilled spirits other than
21brandy.
P3 1(2) Premises of abegin delete licensed hotel, except that any event held on begin insert
hotel holding an on-sale beer and wine
2the premises of the licensed hotel be held in an area that is not
3open to the general public.end delete
4or on-sale general license, except an event shall not be conducted
5in the lobby area of a hotel or in any portion of a hotel that is
6identified, promoted, or otherwise designated by the hotel as a
7club, nightclub, or other similar entertainment venue.end insert For purposes
8of this paragraph, “hotel” means any hotel, motel, resort, bed and
9breakfast inn, or other similar transient lodging establishment, but
10it does not include any residential hotel as defined in Section 50519
11of the Health and Safety Code.
12(c) A hotel where the event authorized by this section is being
13conducted shall maintain, during all times while exercising its
14license privileges, other areas within the licensed premises that
15shall be made readily available to the public not attending
the
16authorized event.
4 17(c)
end delete
18begin insert(d)end insert Except as provided in paragraph (2) of subdivision (b), an
19event authorized by this section shall not be conducted on premises
20for which a permanent retail license has been issued.
7 21(d)
end delete
22begin insert(e)end insert Except for fair market value payments authorized pursuant
23
to this section, a retail licensee, including the licensed caterer or
24the licensed hotel, shall not receive, nor shall the licensee
25conducting the event give, any other item of value or benefit in
26connection with events authorized by this section.
12 27(e)
end delete
28begin insert(f)end insert The person authorized by this section to provide, free of
29charge, entertainment, food, and beverages shall be present during
30the event.
15 31(f)
end delete
32begin insert(g)end insert The person authorized by this section to provide, free of
33charge, entertainment, food, and beverages shall have sole
34responsibility for providing payment for the entertainment, food,
35beverages, and rental fees at the event. Payments for entertainment,
36food, beverages, and rental fees shall not exceed fair market value.
37No other licensed person shall be authorized, under this section,
38to provide any portion of these payments.
22 39(g)
end delete
P4 1begin insert(h)end insert Requests for attendance at the event shall be by invitation
2sent to consumers over 21 years of age at a specific address via
3mail or email, by
telephone, or presented in person. Invitations or
4other advertisements of the event shall not be disseminated by any
5other means. Invitations shall not be sent by the authorized person
6or their authorized unlicensed agent inviting all of the employees
7of a retail licensee or a chain of retail licensees under common
8ownership to an authorized event.
30 9(h)
end delete
10begin insert(i)end insert Attendance at the event shall be limited to consumers who
11receive and accept an invitation to the event. Invited consumers
12may each invite one guest. All attendees shall be over 21 years of
13age. The total number of consumers and their guests
allowed at
14any event authorized by this section shall not exceed 600 people.
15Admittance to the event shall be controlled by a list containing the
16names of consumers who accepted the invitation and their guests.
17The persons identified in this section shall be responsible for
18compliance.
P4 1 19(i)
end delete
20begin insert(j)end insert No premium, gift, free goods, or other thing of value may
21be given away in connection with the event, except as authorized
22by this division.
4 23(j)
end delete
24begin insert(k)end insert The duration of any event authorized by this section shall
25not exceed four hours.
6 26(k)
end delete
27begin insert(l)end insert (1) Subject to paragraph (3), a person authorized to conduct
28events pursuant to this section shall not conduct more than 12
29events in a calendar year where the consumers and guests in
30attendance exceed 100 people, and not more than 24 events in a
31calendar year where the consumers and guests in attendance is 100
32people or fewer.
33(2) The limitation on events authorized by this section shall be
34by person, whether that person holds a single license or multiple
35licenses. If a person holds multiple licenses, the limitation shall
36be applied to the person holding the license, not by type of license.
37(3) A licensee authorized to conduct events pursuant to this
38section shall not conduct more than two events in a calendar year
39on the premises of any single licensed hotel or other licensed hotel
40under the same or common ownership.
P5 1(4) The licensee conducting the event shall not advertise any
2retail licensee. If the event is held on the premises of a retail
3licensee as permitted by this section, the licensee conducting the
4event may list the retailer’s name and
address in the invitation and
5any related advertising for the sole purpose of identifying the
6location of the event. The listing of the retailer’s name and address
7shall be the only reference to the retail licensee and shall be
8relatively inconspicuous in relation to the invitation or
9advertisement as a whole. Pictures or illustrations of the retailer’s
10premises, or laudatory references to the retailer, shall not be
11permitted.
12(5) (A) Other than as specifically authorized by this section,
13alcoholic beverage promotions of any sort shall not be conducted
14by any licensee in conjunction with an event held on the premises
15of a retail licensee pursuant to this section. This restriction includes
16any discounted drink specials offered by the retail licensee to
17consumers.
18(B) For purposes of this paragraph, “in conjunction with” means
19during an event and any period within 24 hours before and 24
20hours following an event.
21(6) A retail licensee shall conspicuously offer for sale alcoholic
22beverages other than the products produced, distributed, bottled,
23or otherwise offered for sale by the licensee conducting the event.
7 24(l)
end delete
25begin insert(m)end insert At least 30 days prior to an event, the licensee, or its
26authorized unlicensed agent, authorized to conduct the event shall
27apply to the department for a permit authorizing the
event. In
28addition to any other information required by the department, the
29licensee shall provide the department all of the following
30information:
31(1) The name of the company authorized to conduct the event.
32(2) The number of people planned to be in attendance.
33(3) The start and end times for the event.
34(4) The location of the event.
35(5) The name of the caterer, if required, obtaining the caterer’s
36authorization for the event.
19 37(m)
end delete
38begin insert(n)end insert All alcoholic beverages provided pursuant to this section
39shall be purchased from the holder of the caterer’s permit or the
40licensed hotel, as applicable.
22 P6 1(n)
end delete
2begin insert(o)end insert All alcoholic beverages served at an event authorized by
3this section shall be served in accordance with Sections 25631 and
425632.
25 5(o)
end delete
6begin insert(p)end insert No person authorized to conduct an event pursuant to this
7section shall hold such an event at the same location more than
8eight times in a calendar year.
28 9(p)
end delete
10begin insert(q)end insert The person authorized to conduct an event under this section
11may provide attendees at the event with a free ride home. The free
12rides shall only constitute free ground transportation to attendees’
13homes or to hotels or motels where attendees are staying.
32 14(q)
end delete
15begin insert(r)end insert In addition to the prescribed fee imposed upon a licensed
16caterer to conduct an event authorized by this section,
a fee of two
17hundred dollars ($200) shall be collected by the department from
18the licensee, or its authorized unlicensed agent, authorized by this
19section to provide, free of charge, entertainment, and beverages
20at an authorized event.
3 21(r)
end delete
22begin insert(s)end insert All licensees involved in events held pursuant to this section
23shall be responsible for compliance with this section, and with all
24other provisions of this division in connection with these events,
25and each may be subject to discipline for violation of this division.
8 26(s)
end delete27begin insert(t)end insert The Legislature finds and declares both of the following:
28(1) That it is necessary and proper to require a separation
29between manufacturing interests, wholesale interests, and retail
30interests in the production and distribution of alcoholic beverages
31in order to prevent suppliers from dominating local markets through
32vertical integration and to prevent excessive sales of alcoholic
33beverages produced by overly aggressive marketing techniques.
34(2) Any exception established by the Legislature to the general
35prohibition against tied interests must be limited to the express
36terms of the exception so as to not undermine the general
37prohibitions.
20 38(t)
end delete
P7 1begin insert(u)end insert This section shall remain in effect only until January 1, 2018,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2018, deletes or extends that date.
No reimbursement is required by this act pursuant to
5Section 6 of Article XIII B of the California Constitution because
6the only costs that may be incurred by a local agency or school
7district will be incurred because this act creates a new crime or
8infraction, eliminates a crime or infraction, or changes the penalty
9for a crime or infraction, within the meaning of Section 17556 of
10the Government Code, or changes the definition of a crime within
11the meaning of Section 6 of Article XIII B of the California
12Constitution.
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