Amended in Senate September 6, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1425

Introduced by Committee on Governmental Organization (Hall (Chair), Nestande (Vice Chair), Chesbro, Cooley, Gray, Hagman, Jones, Jones-Sawyer, Levine, Perea, V. Manuel Pérez, Salas, Torres, and Waldron)

March 21, 2013

An act to amend Sections 23055, begin insert 23356.2, end insert 23356.8, begin delete and 23356.9 end delete begin insert 23356.9, and 25503.31 end insert of the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

AB 1425, as amended, Committee on Governmental Organization. Alcoholic beverages.

(1) Under existing law, the Alcoholic Beverage Control Act is administered by the Department of Alcoholic Beverage Control. Existing law requires the department to make an annual report to the Legislature on the department’s activities, on or before March 1 of each year.

This bill would require the department to post the report on its Internet Web site.

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(2) Existing law authorizes a person to manufacture beer or wine for personal or family use without the need for a license or permit, as provided. Existing law authorizes the removal of beer from the premises where made for use in competition at organized affairs, exhibitions, or competitions. Existing law authorizes the removal of wine from the premises where made, for use at organized affairs, exhibitions, or competitions, including homemakers’ contests, tastings, or judgings, and prohibits that wine from being sold or offered for sale.

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This bill would revise the limitations on the use of beer and wine produced under the above-described circumstances, to authorize these products to be removed from the premises where made only when used in a bona fide competition or exhibition, for personal or family use, or when donated to a nonprofit organization for sale at a fundraising event, excluding nonprofit organizations that either promote home brewing or home winemaking or that are primarily composed of home brewers or home winemakers, as specified. The bill would require beer or wine donated to a nonprofit organization under the bill to be labeled with designated information, and would otherwise exempt it from complying with existing labeling requirements.

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(2)

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begin insert (3) end insert  Existing law prohibits a licensed wine blender from owning or holding, directly or indirectly, a retailer’s license. Existing law also provides that a wine blender’s license does not authorize specified wine tasting activities.

This bill would remove obsolete references from these provisions.

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(4) Existing law, until December 1, 2014, authorizes a beer manufacturer, holder of a winegrower’s license, a California winegrower’s agent, a distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, a distilled spirits manufacturer’s agent, and a licensed retailer to make monetary or alcoholic beverage contributions to a symphony association, as specified. The Alcoholic Beverage Control Act provides that a violation of any of its provisions for which another penalty or punishment is not specifically provided is a misdemeanor.

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This bill would delete the repeal of this provision, thereby authorizing these types of contributions indefinitely. By extending the imposition of an existing crime, this bill imposes a state-mandated local program.

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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.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

SECTION 1.  

Section 23055 of the Business and Professions
Code is amended to read:

23055.  

On or before March 1 of each year, the director shall
prepare and submit to the Legislature an annual report on the
department’s activities and post the report on the department’s
Internet Web site. The report shall include, but not be limited to,
the following information for the previous fiscal year:

(a) The amount of funds allocated and spent by the department
for licensing, enforcement, and administration.

(b) The number of licenses issued, renewed, denied, suspended,
and revoked, by license category.

(c) The average time for processing license applications, by
license category.

(d) The number and type of enforcement activities conducted
by the department and by local law enforcement agencies in
conjunction with the department.

(e) The number, type, and amount of penalties, fines, and other
disciplinary actions taken by the department.

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begin insert SEC. 2. end insert   

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begin insert Section 23356.2 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

23356.2.  

(a) No license or permit shall be required for the
manufacture of beer begin insert or wine end insert for personal or family use, and not
for sale, by a person over 21 years of age. The aggregate amount
of beer begin insert or wine end insert with respect to any household shall not exceed (1)
200 gallons per calendar year if there are two or more adults in
the household or (2) 100 gallons per calendar year if there is only
one adult in the household.

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(b) No license or permit shall be required for the manufacture
of wine for personal or family use, and not for sale, by a person
over 21 years of age. The aggregate amount of wine with respect
to any household shall not exceed (1) 200 gallons per calendar
year if there are two or more adults in the household or (2) 100
gallons per calendar year if there is only one adult in the household.

(c) Any beer manufactured pursuant to this section may be
removed from the premises where manufactured for use in
competition at organized affairs, exhibitions, or competitions,
including homemakers’ contests, tastings, or judgings.

(d) Any wine made pursuant to this section may be removed
from the premises where made for personal or family use, including
use at organized affairs, exhibitions, or competitions, such as
homemakers’ contests, tastings, or judgings. Wine used under this
section shall not be sold or offered for sale.

end delete begin insert

(b) Beer or wine produced pursuant to this section may be
removed from the premises where made only under any of the
following circumstances:

end insert begin insert

(1) For use, including tasting by judges, in a bona fide
competition or exhibition.

end insert begin insert

(2) For personal or family use.

end insert begin insert

(3) When donated to a nonprofit organization for use as
provided in subdivision (c).

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(c) (1) Beer or wine produced pursuant to this section may be
donated to a nonprofit organization for sale at fundraising events
conducted solely by and for the benefit of the nonprofit
organization. Beer and wine donated pursuant to this subdivision
may be sold by the nonprofit organization only for consumption
on the premises of the fundraising event, under a license issued
by the department to the nonprofit organization pursuant to this
division.

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(2) Beer or wine donated and sold pursuant to this subdivision
shall bear a label identifying its producer and stating that the beer
or wine is homemade and not available for sale or for consumption
off the licensed premises. The beer or wine is not required to
comply with other labeling requirements under this division.
However, nothing in this paragraph authorizes the use of any false
or misleading information on a beer or wine label.

end insert begin insert

(3) A nonprofit organization established for the purpose of
promoting home production of beer or wine, or whose membership
is composed primarily of home brewers or home winemakers, shall
not be eligible to sell beer or wine pursuant to this subdivision.

end insert begin insert

(d) Except as provided in subdivision (c), this section does not
authorize the sale or offering for sale by any person of any beer
or wine produced pursuant to this section.

end insert

(e) Except as provided herein, nothing in this section authorizes
any activity in violation of Section 23300, 23355, or 23399.1.

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

Section 23356.8 of the Business and Professions Code
is amended to read:

23356.8.  

A licensed wine blender shall not be issued and shall
not own or hold, directly or indirectly, any retailer’s license, nor
shall the holder of a retailer’s license be issued or own or hold,
directly or indirectly, a wine blender’s license, or own or hold any
interest in a wine blender’s license.

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

Section 23356.9 of the Business and Professions Code
is amended to read:

23356.9.  

A wine blender’s license does not authorize
winetasting activities or the conducting or sponsoring of wine
tastings either on or off the wine blender’s licensed premises.

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begin insert SEC. 5. end insert   

end insert

begin insert Section 25503.31 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

25503.31.  

(a) Notwithstanding any other provision of this
division, a beer manufacturer, holder of a winegrower’s license,
a California winegrower’s agent, a distilled spirits manufacturer,
holder of a distilled spirits rectifiers general license, a distilled
spirits manufacturer’s agent, and a licensed retailer may make
monetary contributions or alcoholic beverage contributions of the
type that licensee is authorized to sell to a symphony association,
if all the following conditions are met:

(1) The symphony association is a nonprofit charitable
corporation or association exempt from payment of income taxes
under the provisions of the Internal Revenue Code of the United
States and Chapter 4 (commencing with Section 23701) of Part
11 of Division 2 of the Revenue and Taxation Code.

(2) The symphony association has been incorporated in the City
and County of San Francisco by and through its predecessor
organizations for not less than 99 years and produces not less than
175 musical events open to the general public per symphony
season.

(3) The symphony association holds a retail on-sale license in
a portion of its premises, provided that no contribution shall be
used in or for the benefit of the symphony association’s retail
on-sale license.

(4) The contribution shall not be conditioned directly or
indirectly, in any way, on the purchase, sale, or distribution of any
alcoholic beverage manufactured or distributed by the beer
manufacturer, holder of a winegrower’s license, California
winegrower’s agent, distilled spirits manufacturer, holder of a
distilled spirits rectifiers general license, a distilled spirits
manufacturer’s agent, or a licensed retailer by the symphony
association.

(b) The symphony association shall serve other brands of beer
distributed by a competing beer wholesaler in addition to the brand
manufactured or marketed by the contributing beer manufacturer,
other brands of wine distributed by a competing wine wholesaler
in addition to the brand produced or marketed by the contributing
winegrower or California winegrower’s agent, and other brands
of distilled spirits distributed by a competing distilled spirits
wholesaler in addition to the brand manufactured or marketed by
the contribution distilled spirits manufacturer or distilled spirits
manufacturer’s agent.

(c) For purposes of this section, “beer manufacturer” includes
a holder of a beer manufacturer’s license, a holder of an out-of-state
beer manufacturer’s certificate, or a holder of a beer and wine
importer’s general license.

(d) The Legislature finds that it is necessary and proper to
require a separation between manufacturing interests, wholesale
interests, and retail interests in the production and distribution of
alcoholic beverages in order to prevent suppliers from dominating
local markets through vertical integration and to prevent excessive
sales of alcoholic beverages produced by overly aggressive
marketing techniques. The Legislature further finds that the
exceptions established by this section to the general prohibition
against tied interests must be limited to their express terms so as
not to undermine the general prohibition, and intends that this
section be construed accordingly.

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(e) This section shall remain in effect only until December 31,
2014, and as of that date is repealed.

end delete

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begin insert SEC. 6. end insert   

end insert begin 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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