AB 2010, as introduced, Gray. Alcoholic beverages: beer returns: product quality.
Existing law, the Alcoholic Beverage Control Act, generally permits a wholesaler or manufacturer to accept the return of beer from a retailer only if the beer is returned in exchange for the identical quantity and brand of beer. Existing law permits a credit memorandum to be issued when a package is broken or damaged when the return and corrections are completed within 15 days, as specified. Existing law provides exceptions from this limitation, including permitting the return of beer by a retailer to a seller, and by a seller to a manufacturer or importer, if the beer is recalled or presents a health or safety issue, as provided.
This bill would extend the exception provided for beer that is recalled or presents a health and safety issue, as described above, to beer that has product quality issues.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 23104.2 of the Business and Professions
2Code is amended to read:
(a) Subject to the exceptions specified in subdivision
2(b), a retail licensee may return beer to the wholesaler or
3manufacturer from whom the retail licensee purchased the beer,
4or any successor thereto, and the wholesaler, manufacturer, or
5successor thereto may accept that return if the beer is returned in
6exchange for the identical quantity and brand of beer. No
7wholesaler or manufacturer, or any successor thereto, shall accept
8the return of any beer from a retail licensee except when the beer
9delivered was not the brand or size container ordered by the retail
10licensee or the amount delivered was other than the amount
11ordered, in which case the order may be corrected by the wholesaler
12or manufacturer who sold the beer, or any successor thereto. If a
13package had been broken or otherwise damaged prior to or at the
14time of
actual delivery, a credit memorandum may be issued for
15the returned package by the wholesaler or manufacturer who sold
16the beer, or any successor thereto, in lieu of exchange for an
17identical package when the return and corrections are completed
18within 15 days from the date the beer was delivered to the retail
19licensee.
20(b) Notwithstanding subdivision (a), a wholesaler or
21manufacturer, or any successor thereto, may accept the return of
22beer purchased from that wholesaler, manufacturer, or successor
23thereto, as follows:
24(1) (A) From a seasonal or temporary licensee if at the
25termination of the period of the license the seasonal or temporary
26licensee has beer remaining unsold, or from an annual licensee
27operating on a temporary basis if at the termination of the
28temporary period the annual licensee has beer remaining unsold.
29(B) For purposes of subparagraph (A), an annual licensee shall
30be considered to be operating on a temporary basis if he or she
31operates at seasonal resorts, including summer and winter resorts,
32or at sporting or entertainment facilities, including racetracks,
33arenas, concert halls, and convention centers. Temporary status
34shall be deemed terminated when operations cease for 15 days or
35more. No wholesaler or manufacturer, or successor thereto, shall
36accept the return of beer from an annual licensee considered to be
37operating on a temporary basis unless the licensee notifies that
38wholesaler or manufacturer, or successor thereto, within 15 days
39of the date the licensee’s operations ceased.
P3 1(2) (A) Subject to subparagraph (B), a wholesaler or
2manufacturer, or any successor thereto, may, with department
3approval, accept the return of a brand of beer discontinued in a
4
California market area or a seasonal brand of beer from a retail
5licensee, provided that the beer is exchanged for a quantity of beer
6of a brand produced or sold by the same manufacturer with a value
7no greater than the original sales price to the retail licensee of the
8returned beer. For purposes of this subparagraph, “seasonal brand
9of beer” means a brand of beer, as defined in Section 23006, that
10is brewed by a manufacturer to commemorate a specific holiday
11season and is so identified by appropriate product packaging and
12labeling.
13(B) A discontinued brand of beer may not be reintroduced for
14a period of 12 months in the same California market area in which
15a return and exchange of that beer as described in subparagraph
16(A) has taken place. A seasonal brand of beer may not be
17reintroduced for a period of six months in the same California
18market area in which a return and exchange of that beer as
19described in subparagraph (A) has taken
place.
20(c) Notwithstanding subdivision (a), a wholesaler or
21manufacturer, or any successor thereto, may accept the return of
22beer purchased from that wholesaler or manufacturer, or any
23successor thereto, by the holder of a retail license following the
24revocation of, suspension of, voluntary surrender of, or failure to
25renew the retail license.
26(d) A wholesaler or manufacturer, or any successor thereto, may
27credit the account of the retailer identified in subdivision (c) in an
28amount not to exceed the original sales price to the retailer of the
29returned beer, provided that the beer has been paid for in full.
30(e) Notwithstanding the 15-day time limit for the return of beer
31described in subdivision (a), beer that is recalled or that is
32considered by a manufacturer, importer, or governmental entity
33to present healthbegin delete orend deletebegin insert,end insert
safetybegin insert, or product qualityend insert issues if distributed,
34offered for sale, or sold in the state may be accepted for return at
35anytime from a retailer and be picked up by the seller of beer. The
36seller of beer may exchange the returned beer for identical product,
37if safe inventorybegin insert or quality-controlled product inventoryend insert is
38available, issue a deferred exchange memorandum showing the
39beer was picked up and is to be replaced when inventory is
40available, or issue a credit memorandum to the retailer for the
P4 1returned beer. The seller of beer may exchange with the
2manufacturer or importer the returned beer and the seller of beer’s
3inventory that was recalled or considered to present healthbegin delete orend deletebegin insert,end insert
4
safetybegin delete issuesend deletebegin insert, or product quality issues. The returned beer may be
5exchangedend insert
for identical product, if safe inventorybegin insert or
6quality-controlled product inventoryend insert is available, or the seller of
7beerbegin delete shallend deletebegin insert
may elect toend insert receivebegin insert eitherend insert a refund from or be issued a
8credit memorandum by the manufacturer or importer for the
9returned beer and seller of beer’s inventory that was recalled or
10considered to present healthbegin delete orend deletebegin insert,end insert safetybegin insert, or product qualityend insert issues.
11(f) Notwithstanding subdivision (a), a licensee may accept the
12return of unsold and unopened beer from an organization that
13obtained a temporary license pursuant to Section 24045 or 24045.1.
14The licensee may credit the account of the organization in an
15amount
not to exceed the original sales price of the returned beer,
16provided that the beer has been paid for in full.
17(g) (1) Notwithstanding subdivision (a), an on-sale retail
18licensee that purchases beer for sale at an event for which a catering
19authorization is issued by the department pursuant to Section 23399
20may return the unused and unopened beer to the original selling
21licensee at the conclusion of the catered event or upon expiration
22of the catering authorization, provided the beer was purchased for
23use or sale only at that event and the on-sale retail licensee does
24not also provide any beer for use or sale at the event from its
25permanent licensed premises. The on-sale retail licensee holding
26the catering authorization shall record and maintain a record of
27the inventory of all unused and unopened beer to be returned at
28the conclusion of the catering event. The original selling licensee
29shall prepare an invoice to reflect
the returned beer that shall
30reference the original sales invoice and shall provide the on-sale
31retail licensee holding the catering authorization with a copy of
32the invoice.
33(2) Any beer returned pursuant to this subdivision must be
34returned to the original selling licensee at the conclusion of the
35catered event or upon expiration of the catering authorization. The
36original selling licensee may credit the account of the on-sale retail
37licensee in an amount not to exceed the original sales price of the
38returned beer, provided the beer has been paid for in full.
O
99