Amended in Senate June 15, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2004


Introduced by Assembly Member Chesbro

February 20, 2014


An act to amend Sectionbegin delete 23055 ofend deletebegin insert 23357 of, and to add Section 23399.45 to,end insert the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

AB 2004, as amended, Chesbro. begin deleteDepartment of Alcoholic Beverages Control: annual report. end deletebegin insertAlcoholic beverage sales: beer manufacturers.end insert

begin insert

(1) Existing law, the Alcoholic Beverage Control Act, authorizes a licensed beer manufacturer, at the licensed premises of production, to sell to consumers for consumption off the premises beer that is produced and bottled by, or produced and packaged for, that manufacturer and, among other things, to sell beer and wine, regardless of source, to consumers for consumption at a bona fide public eating place on the manufacturer’s licensed premises or contiguous to it, as specified. The act provides that a violation of its provisions is a misdemeanor unless otherwise specified. Existing law provides that moneys collected as fees pursuant to the act are to be deposited in the Alcoholic Beverage Control Fund. These moneys are generally allocated to the Department of Alcoholic Beverage Control upon appropriation by the Legislature.

end insert
begin insert

This bill would authorize a beer manufacturer to have upon the premises, as specified, all beers, wines, and brandies, regardless of source, for sale or service to guests during private events or private functions not open to the general public. The bill would require the beer manufacturer to purchase alcoholic beverages sold at the premises that are not produced and bottled by, or produced and packaged for, the beer manufacturer from a licensed wholesaler, as specified. Because a violation of a provision of a license is a misdemeanor and this bill would increase activities permitted pursuant to the license, subject to specified requirements, this bill would expand the definition of a crime and would impose a state-mandated local program.

end insert
begin insert

(2) Existing law authorizes a licensed winegrower to apply to the Department of Alcoholic Beverage Control for a certified farmers’ market sales permit, which allows the licensee, a member of the licensee’s family, or an employee of the licensee to sell wine produced and bottled by the winegrower at certified farmers’ market locations, under specified conditions.

end insert
begin insert

This bill would authorize a licensed beer manufacturer to apply to the Department of Alcoholic Beverage Control for a certified farmers’ market beer sales permit, which would allow the licensee, a member of the licensee’s family, or an employee of the licensee to sell packaged beer that has been manufactured by the beer manufacturer at certified farmers’ market locations, under specified conditions. Among other things, the bill would prohibit a licensee from selling more than 5,000 gallons of beer annually pursuant to all certified farmers’ market beer sales permits held by the beer manufacturer and would require the licensee to pay a fee of $50 for the permit. Because the violation of a provision of a license is punishable as a misdemeanor and the bill would create a new category of license, the bill would expand the definition of a crime, thereby imposing a state-mandated local program.

end insert
begin insert

(3) 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.

end insert
begin insert

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

end insert
begin delete

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, including information for the fiscal calendar year on the number and type of enforcement activities conducted by the department and by local law enforcement agencies in conjunction with the department.

end delete
begin delete

This bill would require the department to additionally include in the report the number of active field agents employed by the department and the number and type of enforcement activities conducted by the department and by local law enforcement agencies in conjunction with the department by license type and by region or county.

end delete

Vote: 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:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 23357 of the end insertbegin insertBusiness and Professions
2Code
end insert
begin insert is amended to read:end insert

3

23357.  

(a) A licensed beer manufacturer may, at the licensed
4premises of production, sell to consumers for consumption off the
5premises beer that is produced and bottled by, or produced and
6packaged for, that manufacturer. Licensed beer manufacturers may
7also exercise any of the following privileges:

8(1) Sellbegin delete suchend deletebegin insert thatend insert beer to any person holding a license
9authorizing the sale of beer.

10(2) Sellbegin delete suchend deletebegin insert thatend insert beer to consumers for consumption on the
11manufacturer’s licensed premises or on premises owned by the
12manufacturerbegin delete whichend deletebegin insert thatend insert are contiguous to the licensed premises
13and which are operated by and for the manufacturer.

14(3) Sell beer and wine, regardless of source, to consumers for
15consumption at a bona fide public eating place on the
16manufacturer’s licensed premises or at a bona fide public eating
17place on premises owned by the manufacturer which are contiguous
18to the licensed premises and which are operated by and for the
19manufacturer.

20(b) Notwithstanding any other provision of this division, licensed
21beer manufacturers and holders of out-of-state beer manufacturer’s
22certificates may be issued and may hold retail package off-sale
23beer and wine licenses. Alcoholic beverage products sold at or
24from the off-sale premisesbegin delete whichend deletebegin insert thatend insert are not produced and bottled
25by, or produced and packaged for, the beer manufacturer shall be
26purchased by the beer manufacturer only from a licensed
27wholesaler.

28(c) Notwithstanding any other provision of this division, a
29licensed beer manufacturer that produces more than 60,000 barrels
30of beer a year may manufacture cider or perry at the licensed
31premises of production and may sell cider or perry to any licensee
32authorized to sell wine. For purposes of this subdivision, “cider”
P4    1and “perry” have the meanings provided in Section 4.21(e)(5) of
2Title 27 of the Code of Federal Regulations. This subdivision does
3not alter or amend the classification of cider or perry as wine for
4any purpose other than that provided by this section.

begin insert

5(d) A beer manufacturer may also have upon the licensed
6premises, or on premises owned by the manufacturer that are
7contiguous to the licensed premises and are operated by and for
8the manufacturer all beers, wines, and brandies, regardless of
9source, for sale or service only to guests during private events or
10private functions not open to the general public. Alcoholic beverage
11products sold at the premises that are not produced and bottled
12by, or produced and packaged for, the beer manufacturer shall be
13purchased by the beer manufacturer only from a licensed
14wholesaler. All alcoholic beverages sold or served shall be
15produced by a licensee authorized to manufacture the product.

end insert
16begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 23399.45 is added to the end insertbegin insertBusiness and
17Professions Code
end insert
begin insert, to read:end insert

begin insert
18

begin insert23399.45.end insert  

(a) For the purposes of this section:

19(1) “Certified farmers’ market” means a location operated in
20accordance with Chapter 10.5 (commencing with Section 47000)
21of Division 17 of the Food and Agricultural Code.

22(2) “Community event” means an event as defined by Section
23113755 of the Health and Safety Code.

24(b) A licensed beer manufacturer may apply to the department
25for a certified farmers’ market beer sales permit. Subject to the
26requirements of Chapter 10.5 (commencing with Section 47000)
27of Division 17 of the Food and Agricultural Code, and to the
28discretion and managerial control of a certified farmers’ market
29or community event operator, a certified farmers’ market beer
30sales permit shall authorize the licensee, a member of the licensee’s
31family, or an employee of the licensee to sell packaged beer that
32has been manufactured by a beer manufacturer applying for the
33permit at a certified farmers’ market, including any permitted
34community event area adjacent to, and operated in conjunction
35with, a certified farmers’ market, located within the county or an
36adjacent county of the physical location of the licensed beer
37manufacturer.

38(c) Sales under the certified farmers’ market beer sales permit
39shall only occur at a certified farmers’ market or within a permitted
40community event area adjacent to, and operated in conjunction
P5    1with, the certified farmers’ market that is located within the same
2county or adjacent county of the location of the licensed beer
3manufacturer’s manufacturing facility. The permit may be issued
4for up to 12 months but shall not be valid for more than one day
5a week at any single specified certified farmers’ market or
6community event location. A beer manufacturer may hold more
7than one permit. The department shall notify the city, county, or
8city and county and the applicable law enforcement agency where
9the certified farmers’ market or permitted community event is to
10be held of the issuance of the permit.

11(d) The licensed beer manufacturer eligible for the certified
12farmers’ market beer sales permit shall not sell more than 5,000
13gallons of beer annually pursuant to all certified farmers’ market
14beer sales permits held by any single beer manufacturer. The
15licensed beer manufacturer shall maintain records of annual beer
16sales made pursuant to all certified farmers’ market beer sales
17permits issued.

18(e) The fee for any permit issued pursuant to this section shall
19be fifty dollars ($50), subject to adjustment pursuant to subdivisions
20(b) and (c) of Section 23320.

21(f) All money collected as fees pursuant to this section shall be
22deposited in the Alcohol Beverage Control Fund as provided in
23Section 25761.

end insert
24begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
25Section 6 of Article XIII B of the California Constitution because
26the only costs that may be incurred by a local agency or school
27district will be incurred because this act creates a new crime or
28infraction, eliminates a crime or infraction, or changes the penalty
29for a crime or infraction, within the meaning of Section 17556 of
30the Government Code, or changes the definition of a crime within
31the meaning of Section 6 of Article XIII B of the California
32Constitution.

end insert
begin delete
33

SECTION 1.  

Section 23055 of the Business and Professions
34Code
is amended to read:

35

23055.  

On or before March 1 of each year, the director shall
36prepare and submit to the Legislature an annual report on the
37department’s activities and post the report on the department’s
38Internet Web site. The report shall include, but not be limited to,
39the following information for the previous fiscal year:

P6    1(a) The amount of funds allocated and spent by the department
2for licensing, enforcement, and administration.

3(b) The number of licenses issued, renewed, denied, suspended,
4and revoked, by license category.

5(c) The average time for processing license applications, by
6license category.

7(d) The number of active field agents employed by the
8department and the number and type of enforcement activities
9conducted by the department and by local law enforcement
10agencies in conjunction with the department by license type and
11by region or county.

12(e) The number, type, and amount of penalties, fines, and other
13disciplinary actions taken by the department.

end delete


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