BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 192|
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CONSENT
Bill No: SB 192
Author: Negrete McLeod (D)
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 13-0, 4/14/09
AYES: Wright, Harman, Benoit, Calderon, Denham, Florez,
Negrete McLeod, Oropeza, Padilla, Romero, Wiggins,
Wyland, Yee
SUBJECT : Alcoholic beverages: returns
SOURCE : California Beer and Beverage Distributors
DIGEST : This bill adds a new provision to the Alcoholic
Beverage Control Act that permits the return of unsold and
unopened beer from an organization that obtained a
temporary license.
ANALYSIS :
Existing Law
1. Permits the return of beer for errors in delivery,
health and safety recalls and the identical exchange of
out-of-code products.
2. Authorizes a wholesaler or manufacturer of beer to
accept the return of quantities of discontinued or
seasonal brands of beer from a retail licensee, provided
CONTINUED
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that the returned beer is exchanged for a quantity of
beer of a brand produced or sold by the same
manufacturer with a value not greater than the original
sales price to the retail licensee of the returned beer.
3. Authorizes the Alcoholic Beverage Control (ABC) to issue
special licenses for the sale of beer or wine on a
temporary basis (usually one to three days) for premises
temporarily occupied by the 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 $25 per day. Also, under existing law, ABC may,
in its discretion, issue on a temporary basis a daily
on-sale general license and the fee for such license
shall be $25 per day.
This bill:
1. Authorizes an alcoholic beverage licensee to accept the
return of unsold and unopened beer from an organization
that has obtained a temporary daily license.
2. Permits the licensee to credit the account of the
organization in an amount not to exceed the original
sales price of the returned beer, provided that the beer
has been paid for in full.
3. Adds clarity to an existing provision of law relating to
the reintroduction of discontinued/seasonal brands of
beer in the same California market area in which a
return and exchange of that beer has taken place.
Background
According to the author's office, this bill has been
introduced on behalf of the California Beer and Beverage
Distributors, whose members have experienced increasing
demands to accept the return of unsold or unopened beer
from nonprofit organizations that are the holders of
temporary on-sale licenses (issued for special events,
fundraisers, parties, etc.). Currently, holders of such
licenses may choose to keep the unopened and unused beer
for a future event for which another temporary license may
be issued. However, they have no legal option to sell or
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dispose of the beer in their possession at the expiration
of their daily license. This bill permits the return of
unsold and unopened beer by daily licensees to the licensee
from whom the beer was purchased.
Prior/Related legislation
AB 3071 (Assembly Governmental Organization Committee),
Chapter 508, Statutes of 2008 . Among other things,
authorized beer that is recalled for health or safety
issues to be accepted for return at anytime from a retailer
and be picked up by the seller of beer. Also, permitted
the seller of beer to exchange the returned beer for
identical product, issue a deferred exchange memorandum
showing the beer was picked-up and is to be replaced when
inventory is available, or issue a credit to the retailer
for the returned beer.
SB 1035 (Perata), Chapter 657, Statutes of 2001 . Allowed a
person in possession of a stock of lawfully acquired
alcoholic beverages following the revocation or voluntary
surrender of, or failure to renew, an alcoholic beverage
license to sell that stock to licensees, as authorized by
the Department of ABC.
SB 452 (Maddy), Chapter 273, Statutes of 1998 . Among other
things, authorized a wholesaler or manufacturer of beer to
accept the return of discontinued or seasonal brands of
beer from a retail licensee, provided that the returned
beer is exchanged for a quantity of beer of a brand
produced or sold by the same manufacturer with a value not
greater than the original sales price to the retail
licensee of the returned beer.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 4/15/09)
California Beer and Beverage Distributors (source)
TSM:do 4/15/09 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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