Amended in Assembly April 11, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2135

Introduced by Assembly Member Levine

February 17, 2016

An act to add begin delete Sections 23300.1 and 23377.1 end delete begin insert Section 23300.1 end insert to the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

AB 2135, as amended, Levine. Alcoholic beverages: revenue begin delete sharing: consumer broker license. end delete begin insert sharing. end insert

begin delete

(1) Existing

end delete

begin insert Existing end insert 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.

begin delete

(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.

end delete begin delete

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.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete yes end delete begin insert no end insert . 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.  

begin insert (a) end insert begin insert   end insert 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.

begin insert

(b) Notwithstanding subdivision (a), all other provisions of this
division shall apply to the written agreement.

end insert

begin delete

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.

end delete