BILL ANALYSIS Ó
AB 1303
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Date of Hearing: April 15, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1303 (Gray) - As Introduced February 27, 2015
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|Policy |Governmental Organization |Vote:|21 - 0 |
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Urgency: No State Mandated Local Program: YesReimbursable: >
SUMMARY:
This bill amends the Alcoholic Beverage Control Act to clarify
that retailers may not be obligated to purchase or sell products
from distilled spirits wholesalers as a condition of a marketing
data agreement with those wholesalers.
FISCAL EFFECT:
Minor and absorbable enforcement costs to the Department of
Alcoholic Beverage Control.]
AB 1303
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COMMENTS:
1)Purpose. Existing law permits certain manufacturers,
winegrowers, rectifiers, distillers, and distilled spirit
wholesalers to conduct market research and purchase marketing
data from off-sale licensed retailers, provided that the
retailer is not obligated to purchase or sell alcoholic
beverages from the manufacturer, winegrower, rectifier, or
distiller. This bill adds distilled spirits wholesalers to
the list of licensees which may not condition the purchase of
market data on the sale of alcoholic beverages.
2)Tied-House Technicalities. In general, tied-house laws
prohibit holders of alcoholic beverage manufacturers,
wholesalers, and retailers from having specified relationships
with one another, including relationships that involve the
provision of something of value from a manufacturer or
wholesaler to a retailer, and vice versa. Numerous exceptions
to this general rule have been created, including allowing
manufacturers and wholesalers to partner with retailers to
conduct market research and purchase market data. The law
prohibits bundling a market research relationship with an
obligation to purchase or sell the manufacturers or
wholesalers alcoholic beverages, and this bill closes a gap in
that prohibition.
Analysis Prepared by:Joel Tashjian / APPR. / (916)
319-2081
AB 1303
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