BILL ANALYSIS
SB 806
Page 1
Date of Hearing: June 30, 2010
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Joe Coto, Chair
SB 806 (Wiggins) - As Amended: June 22, 2010
SENATE VOTE : Not relevant
SUBJECT: Alcoholic beverages: winegrowers and bottlers:
records.
SUMMARY : Allows for the return of wine taken out-of-state
where the wine was purchased from a holder of a beer and wine
wholesaler's license and an off-sale retail license that only
sells wine. Specifically, this bill :
1)Provides that a person who has purchased wine from holder of a
beer and wine wholesaler's license or an off-sale retail
license that only sells wine, and has taken delivery of that
wine within this state for delivery or use, and has removed
that wine from the state, may return all or any portion of
that wine to the holder of a beer and wine wholesaler's
license or an off-sale retail license that only sells wine in
this state from whom the wine was purchased, as specified.
2)The Alcoholic Beverage Control Act (Act) provides for
specified recordkeeping requirements for winegrowers and
bottlers of wine within specified counties. This bill would
make technical, non-substantive amendments to this
requirement.
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)Existing law, known as the "tied-house" law, 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
SB 806
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off-sale).
3)Allows a person who has purchased wine from a licensed
winegrower and has taken the wine from the state, to return
that wine to the licensed premises of the winegrower from whom
the wine was purchased.
4)Restricts the importation of alcoholic beverages for use
within California unless consigned to a licensed importer (or
as otherwise provided) and transported by common carrier.
5)Authorizes an on-sale beer and wine public premises licensee
and a licensed winegrower who exercises his or her license
privileges at specified locations to allow a person who has
purchased and partially consumed a bottle of wine to remove
the partially consumed bottle from the premises upon
departure.
6)Provides for specified recordkeeping requirements for
winegrowers and bottlers of wine within specified counties.
FISCAL EFFECT : Unknown.
COMMENTS :
According to the author, this is a consumer bill which will
allow consumers to return wine to any winemaker without regard
to the winemaker's license. Existing law only allows consumers
to return wine to winegrowers with an ABC Type 02 (Winegrower)
license. Over the past several years hundreds of virtual
wineries holding a combined Type 17 and Type 20 license sell
wine to customers for use out of state. The author states, a
license category should have no bearing on consumer's ability to
return wine. Updating the law to clarify that consumers can
return wine to holders of Type 17 (Beer & Wine Wholesaler) and
Type 20 (Off-Sale Beer & Wine) licenses will clarify the law and
simplify the process for consumers wishing to return wine.
In addition, this bill contains language which is technical and
non-substantive pertaining to specified recordkeeping
requirements for winegrowers and bottlers of wine within
specified counties.
Prior/Related Legislation : AB 1470 (Evans), Chapter 535,
Statutes of 2009. Permits an on-sale beer and wine public
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premises licensee and a licensed winegrower to allow a person
who has purchased and partially consumed a bottle of wine to
remove the partially consumed bottle from the premises upon
departure.
AB 2004 (Evans), Chapter 127, Statutes of 2008, authorized a
licensed winegrower to sell wine to consumers for on-premises
consumption, as specified. In addition, provided any winegrower
that is exercising a privilege, as defined, may allow any person
who has purchased and partially consumed a bottle of
wine to remove such partially consumed bottle from the premises
upon departure, as specified.
SB 113 (Thompson), Chapter 238, Statutes of 1993, permitted a
licensed winegrower (a winery) to sell wine and brandy to
consumers for consumption off the premises or for consumption at
a restaurant located at the winery or immediately contiguous to
it. A winegrower must produce on the licensed premises not less
than 50% of the wines sold to consumers.
REGISTERED SUPPORT / OPPOSITION :
Support
Family Winemakers of California
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531