BILL NUMBER: AB 2135	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Levine

                        FEBRUARY 17, 2016

   An act to add Sections 23300.1 and 23377.1 to the Business and
Professions Code, relating to alcoholic beverages.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2135, as introduced, Levine. Alcoholic beverages: revenue
sharing: consumer broker license.
   (1) Existing law, the Alcoholic Beverage Control Act, which is
administrated by the Department of Alcoholic Beverage Control,
regulates the application, issuance, and suspension of alcoholic
beverage licenses. Existing law establishes specified types of
alcoholic beverage licenses and prescribes the rights and duties of
the respective licensees. Existing law prohibits a person from
exercising a privilege or performing any act for which a license is
required, and a violation of this prohibition a misdemeanor or a
felony, as specified.
   This bill would specify that a written agreement regarding the
sharing or splitting of gross revenue from the sale of alcoholic
beverages between a licensee and a district agricultural association,
the California Exposition and State Fair, a county fair, or a citrus
fruit fair, in connection with the sale of alcoholic beverages
during a state or county fair is not the exercise of a license
privilege or performance of an act for which a license is required,
except as specified.
   (2) The Alcoholic Beverage Control Act contains various provisions
regulating the application for, the issuance of, the suspension of,
and the conditions imposed upon, alcoholic beverage licenses by the
Department of Alcoholic Beverage Control. Existing law provides for
various annual fees for the issuance of alcoholic beverage licenses,
depending upon the type of license issued.
   This bill would authorize the department to issue a consumer
broker's license that would allow the licensee to act as a broker,
for a fee or commission and pursuant to a written agreement, in the
sale to consumers of beer or wine, subject to specified restrictions,
including that the licensee not buy or sell any alcoholic beverages
for its own account. The bill would impose an original fee and an
annual renewal fee for the license, which would be deposited in the
Alcohol Beverage Control Fund.
   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 23300.1 is added to the Business and
Professions Code, to read:
   23300.1.  A written agreement regarding the sharing or splitting
of gross revenue from the sale of alcoholic beverages between a
licensee and a district agricultural association, the California
Exposition and State Fair, a county fair, or a citrus fruit fair, in
connection with the sale of alcoholic beverages during a state or
county fair is not the exercise of a license privilege or performance
of an act for which a license is required, unless the agreement, or
any other related agreement or understanding, results in an
unlicensed person exercising control or undue influence over a
licensee or the operation of a licensed business.
  SEC. 2.  Section 23377.1 is added to the Business and Professions
Code, to read:
   23377.1.  (a) The department may issue a consumer broker's license
that shall authorize the person to whom issued to act as a broker,
for a fee or commission and pursuant to a written agreement, in the
sale to consumers of beer for, or on behalf of, a licensed beer
manufacturer, or in the sale to consumers of wine for, or on behalf
of, a licensed winegrower.
   (b) The written agreement may include authorization for the broker
to operate a branch office for, or on behalf of, a beer
manufacturer, licensed pursuant to Section 23389, or winegrower,
licensed pursuant to Section 23390. The broker may charge fees as
agreed upon between the parties in the operation of the licensed
branch office. The department may suspend or revoke any consumer
broker's license when grounds exist for suspension or revocation in
the operation of a branch office pursuant to this subdivision.
   (c) A consumer broker licensee shall not buy or sell any alcoholic
beverages for its own account, take or deliver title to alcoholic
beverages, or receive or store any alcoholic beverages in its own
name in this state.
   (d) (1) An applicant for an original consumer broker's licensee,
or the renewal of that license, shall accompany the application with
a fee of three hundred dollars ($300). The department may adjust
these fees as provided in subdivisions (b) and (c) of Section 23320.
   (2) All moneys collected from the fees provided for in this
section shall be deposited in the Alcohol Beverage Control Fund as
provided in Section 25761.