BILL NUMBER: SB 1423	CHAPTERED  07/24/00

	CHAPTER   205
	FILED WITH SECRETARY OF STATE   JULY 24, 2000
	APPROVED BY GOVERNOR   JULY 24, 2000
	PASSED THE SENATE   JULY 6, 2000
	PASSED THE ASSEMBLY   JUNE 29, 2000
	AMENDED IN ASSEMBLY   JUNE 8, 2000
	AMENDED IN SENATE   APRIL 3, 2000

INTRODUCED BY   Senator Chesbro

                        FEBRUARY 3, 2000

   An act to add Section 25500.1 to the Business and  Professions
Code, relating to alcoholic beverages.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1423, Chesbro.  Alcoholic beverages:  tied-house restrictions.
   The Alcoholic Beverage Control Act contains limitations on sales
commonly known as "tied-house" restrictions, which generally prohibit
a manufacturer, winegrower, manufacturer's agent, California
winegrower's agent, rectifier, distiller, bottler, importer, or
wholesaler from furnishing, giving, or lending any money or other
thing of value to any person engaged in operating, owning, or
maintaining any off-sale licensed premises.
   This bill would provide that for purposes of these provisions, the
listing of the names, addresses, telephone numbers or e-mail
addresses, or both, or web site addresses, of two or more
unaffiliated on-sale retailers selling wine or brandy, or both, and
operating and licensed as bona fide public eating places selling the
wine or brandy 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 Internet inquiry or in
person does not constitute a thing of value or prohibited inducement
to the listed on-sale retailer, if specified conditions are met.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 25500.1 is added to the Business and
Professions Code, to read:
   25500.1.  Notwithstanding Section 25500, the listing of the names,
addresses, telephone numbers and/or e-mail addresses, or web site
addresses, of two or more unaffiliated on-sale retailers selling wine
and/or brandy and operating and licensed as bona fide public eating
places pursuant to Section 23038 selling the wine and/or brandy
produced, distributed and/or imported by a nonretail industry member
in response to a direct inquiry from a consumer received by
telephone, by mail, by electronic Internet inquiry or in person does
not constitute a thing of value or prohibited inducement to the
listed on-sale retailer, provided:
   (a) The listing does not also contain the retail price of the
product, and
   (b) The listing is the only reference to the on-sale retailers in
the direct communication, and
   (c) The listing does not refer only to one on-sale retailer or
only to on-sale retail establishments controlled directly or
indirectly by the same on-sale retailer, and
   (d) The listing is made by, and/or produced by, and/or paid for,
exclusively by the nonretail industry member making the response.
   For the purposes of this section, "nonretail industry member" is
defined as a manufacturer, winegrower, distiller of wine and/or
brandy, regardless of any other licenses held directly or indirectly
by such person.  Except as specifically provided above, any payment
for, making or production, either directly or indirectly, listing the
names, addresses, telephone numbers and/or e-mail addresses, or web
site addresses, of on-sale retailers otherwise authorized by this
section by a wholesaler or by a wholesaler that also holds an
importer's license shall constitute the furnishing of a thing of
value or inducement to the listed on-sale retailers in violation of
this division.