BILL NUMBER: SB 327 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 22, 2015
AMENDED IN SENATE APRIL 6, 2015
INTRODUCED BY Senator Hall
FEBRUARY 23, 2015
An act to amend Sections 24045, 24045.1, and 25633 of
Section 25500.1 of, and to repeal Section 25502.1 of,
the Business and Professions Code, relating to alcoholic
beverages.
LEGISLATIVE COUNSEL'S DIGEST
SB 327, as amended, Hall. Alcoholic beverages: licensees.
licensees: tied-house restrictions.
Existing law, known as tied-house restrictions, prohibits a
manufacturer, winegrower, manufacturer's agent, rectifier, California
winegrower's agent, distiller, bottler, importer, and wholesaler,
and any officer, director, or agent of any of those persons, from
having specified relationships with an on-sale and off-sale alcoholic
beverage licensee with limited exceptions, and makes a violation of
these prohibitions punishable as a misdemeanor.
Existing law, with certain exceptions, prohibits a manufacturer of
alcoholic beverages and a winegrower from paying, crediting, or
compensating a retailer for advertising or paying or giving anything
of value for the privilege of placing a sign or advertisement with a
retail licensee. In this context, existing law specifies that the
listing of specified information, including Internet Web site
addresses, regarding two or more unaffiliated on-sale or off-sale
retailers is not a thing of value or a prohibited inducement, if
certain conditions are met.
This bill would recast those provisions to specify that for
off-sale retailers, as with on-sale retailers, the listing of other
electronic media does not constitute a thing of value or a prohibited
inducement, and would make other changes of a conforming or
nonsubstantive nature.
The Alcoholic Beverage Control Act authorizes the issuance of a
special license for the sale of beer or wine on a temporary basis to
a licensee for a picnic, social gathering, or similar occasion. The
act also prohibits alcoholic beverages from being delivered to
on-sale and off-sale licensees on Sunday and prohibits delivery on
any other day except between the hours of 3 a.m. 8 P.M..
This bill instead would allow beer wholesalers and specified beer
manufacturers to deliver beer to holders of the special license
described above between the hours of 6 a.m. and 2 p.m. on Sunday. The
bill would make conforming technical changes.
Vote: majority. Appropriation: no. Fiscal committee: yes
no . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25500.1 of the
Business and Professions Code is amended to read:
25500.1. (a) The listing of the names, addresses, telephone
numbers, email addresses, or Internet Web site addresses, or other
electronic media, of two or more unaffiliated on-sale or
off-sale retailers selling beer, wine, or distilled spirits
produced, distributed, or imported by a nonretail industry member in
response to a direct inquiry from a consumer received by telephone,
by mail, by electronic inquiry, or in person does not constitute a
thing of value or prohibited inducement to the listed on-sale or
off-sale retailer, provided all of the following conditions
are met:
(1) The listing does not also contain the retail price of the
product.
(2) The listing is the only reference to the on-sale or
off-sale retailers in the direct communication.
(3) The listing does not refer only to one on-sale or
off-sale retailer or only to on-sale or off-sale
retail establishments controlled directly or indirectly by the same
on-sale retailer.
(4) The listing is made by, or produced by, or paid for,
exclusively by the nonretail industry member making the response.
(b) For the purposes of this section, "nonretail industry member"
is defined as a manufacturer, including, but not limited to, a beer
manufacturer, winegrower, or distiller of alcoholic beverages or an
agent of that entity, or a wholesaler, regardless of any other
licenses held directly or indirectly by that person.
SEC. 2. Section 25502.1 of the Business
and Professions Code is repealed.
25502.1. (a) Notwithstanding Section 25502, the listing of the
names, addresses, telephone numbers, e-mail addresses, or Internet
Web site addresses, of two or more unaffiliated off-sale retailers
selling the products produced, distributed or imported by a nonretail
industry member in response to a direct inquiry from a consumer
received by telephone, by mail, by electronic inquiry or in person
does not constitute a thing of value or prohibited inducement to the
listed off-sale retailer, provided all of the following conditions
are met:
(1) The listing does not also contain the retail price of the
product.
(2) The listing is the only reference to the off-sale retailers in
the direct communication.
(3) The listing does not refer only to one off-sale retailer or
only to off-sale retail establishments controlled directly or
indirectly by the same off-sale retailer.
(4) The listing is made by, or produced by, or paid for,
exclusively by the nonretail industry member making the response.
(b) For the purposes of this section, "nonretail industry member"
is defined as a manufacturer, including, but not limited to, a beer
manufacturer, winegrower, or distiller of alcoholic beverages, or an
agent of those entities, or a wholesaler, regardless of any other
licenses held directly or indirectly by that person.
SECTION 1. Section 24045 of the Business and
Professions Code is amended to read:
24045. (a) All licenses, except on-sale general licenses for
seasonal businesses and daily on-sale general licenses issued
pursuant to Section 24045.1, shall be issued on an annual basis.
(b) Notwithstanding subdivision (a), a license transferred
pursuant to Section 24071 or 24071.1 shall be issued for the
unexpired term remaining on the license of the transferor.
(c) The director may assign or reassign dates for the expiration
of licenses issued pursuant to this section. The director may
establish a registration year for any license issued pursuant to
subdivision (a) consisting of any period from six months to 18
months, inclusive, and shall prorate related annual fees to the
extent the registration year is greater or less than 12 months, with
subsequent renewals being required at yearly intervals.
SEC. 2. Section 24045.1 of the Business and
Professions Code is amended to read:
24045.1. (a) The department, in its discretion, may issue on a
temporary basis a daily on-sale general license and the fee for the
license shall be twenty-five dollars ($25) per day. The license
authorizes the sale of distilled spirits, wine, and beer for
consumption on the premises where sold, and off-sale privileges shall
not be exercised under the license. A daily on-sale general license
may only be issued to a political party or affiliate supporting a
candidate for public office or a ballot measure, an organization
formed for a specific charitable or civic purpose, a fraternal
organization in existence for over five years with a regular
membership, or a religious organization. Distilled spirits sold under
a daily on-sale general license shall have been purchased at retail
from the holder of an off-sale general license.
(b) (1) The department may issue a special license for the sale of
beer or wine on a temporary basis for premises temporarily occupied
by a licensee for a picnic, social gathering, or similar occasion at
a fee equal to the actual cost of issuing the license, but not to
exceed twenty-five dollars ($25) per day.
(2) (A) In addition to the hours and days specified in Section
25633, a beer wholesaler may deliver beer between the hours of 6 a.m.
and 2 p.m. on Sunday to a licensee who has obtained a license
pursuant to this section.
(B) In addition to the hours and days specified in Section 25633,
a beer manufacturer that self-distributes may deliver beer that is
produced pursuant to Section 23357 between the hours of 6 a.m. and 2
p.m. on Sunday to a licensee who has obtained a license pursuant to
this section.
(c) The department may adopt such rules as it determines to be
necessary to implement and administer the provisions of this section,
including, but not limited to, limitations on the number of times
during any calendar year a qualified organization may be issued a
license provided for by this section.
(d) The provisions of Article 2 (commencing with Section 23815) of
Chapter 5 and Article 2 (commencing with Section 23985) of Chapter 6
of this division shall not be applicable to the licenses provided
for by this section.
SEC. 3. Section 25633 of the Business and
Professions Code is amended to read:
25633. Except as otherwise provided in this section and paragraph
(2) of subdivision (b) of Section 24045.1, a person licensed as a
manufacturer, winegrower, distilled spirits manufacturer's agent,
rectifier, or wholesaler of any alcoholic beverage shall not deliver
or cause to be delivered any alcoholic beverage to or for any person
holding an on-sale or off-sale license on Sunday or except between
the hours of 3 a.m. and 8 p.m. of any day other than Sunday. Any
alcoholic beverage may be delivered at the platform of the
manufacturing, producing, or distributing plant at any time. Nothing
contained in this section prohibits the transportation or the
carriage and delivery in transit at any time of any alcoholic
beverage between the premises of a manufacturer, winegrower,
wholesaler, distiller, importer, or any of them. Every person
violating the provisions of this section is guilty of a misdemeanor.