BILL ANALYSIS
SB 192
Page 1
Date of Hearing: June 24, 2009
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Joe Coto, Chairman
SB 192 (Negrete McLeod) - As Introduced: February 18, 2009
SENATE VOTE : 37-0
SUBJECT : Alcoholic beverages: returns.
SUMMARY : Adds a new provision to the Alcoholic Beverage
Control Act (Act) that permits the return of unsold and unopened
beer from an organization that obtained a temporary license
Specifically, 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.
EXISTING LAW
1)Establishes the Department of Alcoholic Beverage Control (ABC)
and grants it exclusive authority to administer the provisions
of the Act in accordance with laws enacted by the Legislature.
This involves licensing individuals and businesses associated
with the manufacture, importation and sale of alcoholic
beverages in this state and the collection of license fees or
occupation taxes for this purpose.
2)Separates the alcoholic beverage industry into three component
parts, or tiers, of manufacturer (including breweries,
wineries and distilleries), wholesaler, and retailer (both
on-sale and off-sale).
3)Permits the return of beer for errors in delivery, health and
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safety recalls and the identical exchange of out-of-code
products.
4)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 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.
5)Authorizes the 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.
FISCAL EFFECT : None
COMMENTS :
Purpose of the bill : 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 dispose of the beer in their possession at the
expiration of their daily license. This measure would permit
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 G.O. 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
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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 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.
REGISTERED SUPPORT / OPPOSITION :
Support
California Beer and Beverage Distributors (source)
Opposition
None on file.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531