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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