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.
begin insert(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.
end insertbegin insertThis 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.
end insert(2)
end deletebegin 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.
begin insert(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.
end insertbegin insertThis 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.
end insertbegin insertThe 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.
end insertbegin insertThis bill would provide that no reimbursement is required by this act for a specified reason.
end insertVote: majority.
Appropriation: no.
Fiscal committee: yes.
State-mandated local program: begin deleteno end deletebegin insertyesend insert.
The people of the State of California do enact as follows:
Section 23055 of the Business and Professions
2Code is amended to read:
On or before March 1 of each year, the director shall
4prepare and submit to the Legislature an annual report on the
5department’s activities and post the report on the department’s
6Internet Web site. The report shall include, but not be limited to,
7the following information for the previous fiscal year:
8(a) The amount of funds allocated and spent by the department
9for licensing, enforcement, and administration.
10(b) The number of licenses issued, renewed, denied, suspended,
11and revoked, by license category.
12(c) The average time for processing license applications, by
13license category.
14(d) The number and type of enforcement activities conducted
15by the department and by local law enforcement agencies in
16conjunction with the department.
17(e) The number, type, and amount of penalties, fines, and other
18disciplinary actions taken by the department.
begin insertSection 23356.2 of the end insertbegin insertBusiness and Professions Codeend insert
20begin insert is amended to read:end insert
(a) No license or permit shall be required for the
22manufacture of beerbegin insert or wineend insert for personal or family use, and not
23for sale, by a person over 21 years of age. The aggregate amount
24of beerbegin insert or wineend insert with respect to any household shall not exceed (1)
25200 gallons per calendar year if there are two or more adults in
26the household or (2) 100 gallons per calendar year if there is only
27one adult in the household.
28(b) No license or permit shall be required for the manufacture
29of wine for personal or family use, and not for sale, by a person
30over 21 years of age. The aggregate amount of wine with respect
31to any household shall not exceed (1) 200 gallons per calendar
32year if there are two or more adults in the household or (2) 100
33gallons per
calendar year if there is only one adult in the household.
34(c) Any beer manufactured pursuant to this section may be
35removed from the premises where manufactured for use in
36competition at organized affairs, exhibitions, or competitions,
37including homemakers’ contests, tastings, or judgings.
P4 1(d) Any wine made pursuant to this section may be removed
2from the premises where made for personal or family use, including
3use at organized affairs, exhibitions, or competitions, such as
4homemakers’ contests, tastings, or judgings. Wine used under this
5section shall not be sold or offered for sale.
6(b) Beer or wine produced pursuant to this section may be
7removed from the premises where made only under any of the
8following circumstances:
9(1) For use, including tasting by judges, in a bona fide
10competition or exhibition.
11(2) For personal or family use.
end insertbegin insert
12(3) When donated to a nonprofit organization for use as
13provided in subdivision (c).
14(c) (1) Beer or wine produced pursuant to this section may be
15donated to a nonprofit organization for sale at fundraising events
16conducted solely by and for the benefit of the nonprofit
17organization. Beer and wine donated pursuant to this subdivision
18may be sold by the
nonprofit organization only for consumption
19on the premises of the fundraising event, under a license issued
20by the department to the nonprofit organization pursuant to this
21division.
22(2) Beer or wine donated and sold pursuant to this subdivision
23shall bear a label identifying its producer and stating that the beer
24or wine is homemade and not available for sale or for consumption
25off the licensed premises. The beer or wine is not required to
26comply with other labeling requirements under this division.
27However, nothing in this paragraph authorizes the use of any false
28or misleading information on a beer or wine label.
29(3) A nonprofit organization established for the purpose of
30promoting home production of beer or wine, or whose membership
31is composed primarily of home brewers or home winemakers, shall
32not be eligible to sell beer or wine pursuant to this subdivision.
33(d) Except as provided in subdivision (c), this section does not
34authorize the sale or offering for sale by any person of any beer
35or wine produced pursuant to this section.
36(e) Except as provided herein, nothing in this section authorizes
37any activity in violation of Section 23300, 23355, or 23399.1.
Section 23356.8 of the Business and Professions Code
40 is amended to read:
A licensed wine blender shall not be issued and shall
2not own or hold, directly or indirectly, any retailer’s license, nor
3shall the holder of a retailer’s license be issued or own or hold,
4directly or indirectly, a wine blender’s license, or own or hold any
5interest in a wine blender’s license.
Section 23356.9 of the Business and Professions Code
8 is amended to read:
A wine blender’s license does not authorize
10winetasting activities or the conducting or sponsoring of wine
11tastings either on or off the wine blender’s licensed premises.
begin insertSection 25503.31 of the end insertbegin insertBusiness and Professions Codeend insert
13begin insert is amended to read:end insert
(a) Notwithstanding any other provision of this
15division, a beer manufacturer, holder of a winegrower’s license,
16a California winegrower’s agent, a distilled spirits manufacturer,
17holder of a distilled spirits rectifiers general license, a distilled
18spirits manufacturer’s agent, and a licensed retailer may make
19monetary contributions or alcoholic beverage contributions of the
20type that licensee is authorized to sell to a symphony association,
21if all the following conditions are met:
22(1) The symphony association is a nonprofit charitable
23corporation or association exempt from payment of income taxes
24under the provisions of the Internal Revenue Code of the United
25States and Chapter 4 (commencing with Section 23701) of Part
2611 of Division 2 of the Revenue and
Taxation Code.
27(2) The symphony association has been incorporated in the City
28and County of San Francisco by and through its predecessor
29organizations for not less than 99 years and produces not less than
30175 musical events open to the general public per symphony
31season.
32(3) The symphony association holds a retail on-sale license in
33a portion of its premises, provided that no contribution shall be
34used in or for the benefit of the symphony association’s retail
35on-sale license.
36(4) The contribution shall not be conditioned directly or
37indirectly, in any way, on the purchase, sale, or distribution of any
38alcoholic beverage manufactured or distributed by the beer
39manufacturer, holder of a winegrower’s license, California
40winegrower’s agent, distilled spirits manufacturer, holder of a
P6 1distilled spirits rectifiers general
license, a distilled spirits
2manufacturer’s agent, or a licensed retailer by the symphony
3association.
4(b) The symphony association shall serve other brands of beer
5distributed by a competing beer wholesaler in addition to the brand
6manufactured or marketed by the contributing beer manufacturer,
7other brands of wine distributed by a competing wine wholesaler
8in addition to the brand produced or marketed by the contributing
9winegrower or California winegrower’s agent, and other brands
10of distilled spirits distributed by a competing distilled spirits
11wholesaler in addition to the brand manufactured or marketed by
12the contribution distilled spirits manufacturer or distilled spirits
13manufacturer’s agent.
14(c) For purposes of this section, “beer manufacturer” includes
15a holder of a beer manufacturer’s license, a holder of an out-of-state
16beer manufacturer’s certificate, or a holder of a
beer and wine
17importer’s general license.
18(d) The Legislature finds that it is necessary and proper to
19require a separation between manufacturing interests, wholesale
20interests, and retail interests in the production and distribution of
21alcoholic beverages in order to prevent suppliers from dominating
22local markets through vertical integration and to prevent excessive
23sales of alcoholic beverages produced by overly aggressive
24marketing techniques. The Legislature further finds that the
25exceptions established by this section to the general prohibition
26against tied interests must be limited to their express terms so as
27not to undermine the general prohibition, and intends that this
28section be construed accordingly.
29(e) This section shall remain in effect only until December 31,
302014, and as of that date is repealed.
No reimbursement is required by this act pursuant to
32Section 6 of Article XIII B of the California Constitution because
33the only costs that may be incurred by a local agency or school
34district will be incurred because this act creates a new crime or
35infraction, eliminates a crime or infraction, or changes the penalty
36for a crime or infraction, within the meaning of Section 17556 of
37the Government Code, or changes the definition of a crime within
38the meaning of Section 6 of Article XIII B of the California
39Constitution.
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