BILL NUMBER: AB 2010	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gray

                        FEBRUARY 20, 2014

   An act to amend Section 23104.2 of the Business and Professions
Code, relating to alcoholic beverages.


	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 23104.2 of the Business and Professions Code is
amended to read:
   23104.2.  (a) Subject to the exceptions specified in subdivision
(b), a retail licensee may return beer to the wholesaler or
manufacturer from whom the retail licensee purchased the beer, or any
successor thereto, and the wholesaler, manufacturer, or successor
thereto may accept that return if the beer is returned in exchange
for the identical quantity and brand of beer. No wholesaler or
manufacturer, or any successor thereto, shall accept the return of
any beer from a retail licensee except when the beer delivered was
not the brand or size container ordered by the retail licensee or the
amount delivered was other than the amount ordered, in which case
the order may be corrected by the wholesaler or manufacturer who sold
the beer, or any successor thereto. If a package had been broken or
otherwise damaged prior to or at the time of actual delivery, a
credit memorandum may be issued for the returned package by the
wholesaler or manufacturer who sold the beer, or any successor
thereto, in lieu of exchange for an identical package when the return
and corrections are completed within 15 days from the date the beer
was delivered to the retail licensee.
   (b) Notwithstanding subdivision (a), a wholesaler or manufacturer,
or any successor thereto, may accept the return of beer purchased
from that wholesaler, manufacturer, or successor thereto, as follows:

   (1) (A) From a seasonal or temporary licensee if at the
termination of the period of the license the seasonal or temporary
licensee has beer remaining unsold, or from an annual licensee
operating on a temporary basis if at the termination of the temporary
period the annual licensee has beer remaining unsold.
   (B) For purposes of subparagraph (A), an annual licensee shall be
considered to be operating on a temporary basis if he or she operates
at seasonal resorts, including summer and winter resorts, or at
sporting or entertainment facilities, including racetracks, arenas,
concert halls, and convention centers. Temporary status shall be
deemed terminated when operations cease for 15 days or more. No
wholesaler or manufacturer, or successor thereto, shall accept the
return of beer from an annual licensee considered to be operating on
a temporary basis unless the licensee notifies that wholesaler or
manufacturer, or successor thereto, within 15 days of the date the
licensee's operations ceased.
   (2) (A) Subject to subparagraph (B), a wholesaler or manufacturer,
or any successor thereto, may, with department approval, accept the
return of a brand of beer discontinued in a California market area or
a seasonal brand of beer from a retail licensee, provided that the
beer is exchanged for a quantity of beer of a brand produced or sold
by the same manufacturer with a value no greater than the original
sales price to the retail licensee of the returned beer. For purposes
of this subparagraph, "seasonal brand of beer" means a brand of
beer, as defined in Section 23006, that is brewed by a manufacturer
to commemorate a specific holiday season and is so identified by
appropriate product packaging and labeling.
   (B) A discontinued brand of beer may not be reintroduced for a
period of 12 months in the same California market area in which a
return and exchange of that beer as described in subparagraph (A) has
taken place. A seasonal brand of beer may not be reintroduced for a
period of six months in the same California market area in which a
return and exchange of that beer as described in subparagraph (A) has
taken place.
   (c) Notwithstanding subdivision (a), a wholesaler or manufacturer,
or any successor thereto, may accept the return of beer purchased
from that wholesaler or manufacturer, or any successor thereto, by
the holder of a retail license following the revocation of,
suspension of, voluntary surrender of, or failure to renew the retail
license.
   (d) A wholesaler or manufacturer, or any successor thereto, may
credit the account of the retailer identified in subdivision (c) in
an amount not to exceed the original sales price to the retailer of
the returned beer, provided that the beer has been paid for in full.
   (e) Notwithstanding the 15-day time limit for the return of beer
described in subdivision (a), beer that is recalled or that is
considered by a manufacturer, importer, or governmental entity to
present health  or   ,  safety  , or
product quality  issues if distributed, offered for sale, or
sold in the state may be accepted for return at anytime from a
retailer and be picked up by the seller of beer. The seller of beer
may exchange the returned beer for identical product, if safe
inventory  or quality-controlled product inventory  is
available, issue a deferred exchange memorandum showing the beer was
picked up and is to be replaced when inventory is available, or issue
a credit memorandum to the retailer for the returned beer. The
seller of beer may exchange with the manufacturer or importer the
returned beer and the seller of beer's inventory that was recalled or
considered to present health  or   , 
safety  issues   , or product quality issues.
The returned beer may be exchanged  for identical product, if
safe inventory  or quality-controlled product inventory  is
available, or the seller of beer  shall   may
elect to  receive  either  a refund from or be issued a
credit memorandum by the manufacturer or importer for the returned
beer and seller of beer's inventory that was recalled or considered
to present health  or   ,  safety  , or
product quality  issues.
   (f) Notwithstanding subdivision (a), a licensee may accept the
return of unsold and unopened beer from an organization that obtained
a temporary license pursuant to Section 24045 or 24045.1. The
licensee may credit the account of the organization in an amount not
to exceed the original sales price of the returned beer, provided
that the beer has been paid for in full.
   (g) (1) Notwithstanding subdivision (a), an on-sale retail
licensee that purchases beer for sale at an event for which a
catering authorization is issued by the department pursuant to
Section 23399 may return the unused and unopened beer to the original
selling licensee at the conclusion of the catered event or upon
expiration of the catering authorization, provided the beer was
purchased for use or sale only at that event and the on-sale retail
licensee does not also provide any beer for use or sale at the event
from its permanent licensed premises. The on-sale retail licensee
holding the catering authorization shall record and maintain a record
of the inventory of all unused and unopened beer to be returned at
the conclusion of the catering event. The original selling licensee
shall prepare an invoice to reflect the returned beer that shall
reference the original sales invoice and shall provide the on-sale
retail licensee holding the catering authorization with a copy of the
invoice.
   (2) Any beer returned pursuant to this subdivision must be
returned to the original selling licensee at the conclusion of the
catered event or upon expiration of the catering authorization. The
original selling licensee may credit the account of the on-sale
retail licensee in an amount not to exceed the original sales price
of the returned beer, provided the beer has been paid for in full.