Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1035

Introduced by Assembly Member Linder

February 26, 2015

An act to amend Section begin delete 24045.2 end delete begin insert 23356.2 end insert of the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

AB 1035, as amended, Linder. Alcoholic beverages: begin delete temporary licenses. end delete begin insert nonprofits: auctions: licenses. end insert

The Alcoholic Beverage Control Act authorizes begin delete the issuance of a special temporary retail package off-sale beer and wine license to a television station, supported wholly or in part by public membership subscription, which is a nonprofit, charitable corporation, as provided, or to a nonprofit, charitable corporation that receives and administers donations for a noncommercial, educational television station, or public broadcasting station supported wholly or in part by public membership subscription, as provided, subject to specified restrictions end delete begin insert 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 or wine from the premises where made for personal or family use, for specified purposes, including for donation to a nonprofit organization for sale at a fundraising event end insert .

This bill would begin delete make nonsubstantive changes to this provision end delete begin insert provide that a nonprofit organization that auctions this type of donated beer or wine that has a value of less than end insert begin insert $____ is not required to obtain a license issued under the act for the sale of that beer or wine end insert .

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

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 or wine for personal or family use, and not
for sale, by a person over 21 years of age. The aggregate amount
of beer or wine with respect to any household shall not exceed (1)
100 gallons per calendar year if there is only one adult in the
household or (2) 200 gallons per calendar year if there are two or
more adults in the household.

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

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

(2) For personal or family use.

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

(4) Beer or wine produced pursuant to this section may only be
provided or served to the public pursuant to paragraphs (1) and
(3) within a clearly identified area, that includes, but is not limited
to, a physical barrier with a monitored point of entry. Beer or wine
produced by a beer manufacturer or winegrower as defined in
Sections 23012 and 23013, respectively, and licensed by the
department, shall not be provided or served to the public within
this area.

(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. begin insert A nonprofit organization that auctions donated beer or
wine at a fundraising event that has a value of less than ____
dollars ($____) shall not be required to obtain a license issued by
the department pursuant to this division. end insert

(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.

(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 pursuant to this subdivision.

(d) A nonprofit organization established for the purpose of
promoting home production of beer shall be eligible to serve beer
at a fundraising event conducted solely for the benefit of the
nonprofit organization pursuant to this subdivision, subject to the
following conditions:

(1) The beer that is served is donated by home brewers.

(2) The nonprofit organization shall be issued no more than two
permits per calendar year for the serving of beer pursuant to this
subdivision.

(3) The nonprofit organization shall display a printed notice at
the event that states that home brewed beer is not a regulated
product subject to health and safety standards.

(4) The event shall have an educational component that includes
instruction on the subject of beer, including, but not limited to, the
history, nature, values, and characteristics of beer, the use of beer
lists, and the methods of presenting and serving beer.

(5) Only bona fide members of the nonprofit organization may
attend the event.

(6) The nonprofit organization shall not solicit or sign up
individuals to be members of the nonprofit organization on the
day of the event at the event premises.

(7) The nonprofit organization shall provide the department
with the number of members that have registered for the event and
the estimated number that will be in attendance, 48 hours before
the event. This paragraph shall apply only if more than 50 members
are expected to be in attendance at the event.

(e) 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.

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

begin delete

SECTION 1.  

Section 24045.2 of the Business and Professions
Code is amended to read:

24045.2.  

(a) The department may issue a special temporary
retail package off-sale beer and wine license to: (1) a television
station, supported wholly or in part by public membership
subscription, which is a nonprofit, charitable corporation exempt
from payment of income taxes under the provisions of the Internal
Revenue Code of 1954 of the United States, or (2) a nonprofit,
charitable corporation exempt from payment of income taxes under
the provisions of the Internal Revenue Code of 1954 of the United
States that receives and administers donations for a noncommercial,
educational television station, or public broadcasting station
supported wholly or in part by public membership subscription.
An applicant for this license shall accompany the application with
a fee of one hundred dollars ($100).

(b) A license issued pursuant to this section shall only entitle
the licensee to sell at auction beer and wine donated to it.
Notwithstanding any other provision, a licensee may donate beer,
wine, or both beer and wine to a corporation licensed under this
section, provided donations are not made in connection with a sale
of an alcoholic beverage.

(c) This license shall be for a period not exceeding 30 days.
Only one license shall be issued to any corporation in a calendar
year.

end delete