BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1323|
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THIRD READING
Bill No: SB 1323
Author: Walters (R)
Amended: 4/27/10
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 8-1, 4/13/10
AYES: Wright, Calderon, Denham, Oropeza, Padilla, Price,
Wyland, Yee
NOES: Florez
NO VOTE RECORDED: Harman, Negrete McLeod
SENATE APPROPRIATIONS COMMITTEE : 10-0, 5/3/10
AYES: Kehoe, Cox, Corbett, Denham, Leno, Price, Walters,
Wolk, Wyland, Yee
NO VOTE RECORDED: Alquist
SUBJECT : Alcoholic beverage control: licensees
SOURCE : Distilled Spirits Council of the United States
DIGEST : This bill modifies an existing provision of the
Alcoholic Beverage Control Act that allows, until January
1, 2014, a manufacturer, winegrower, rectifier, or
distiller to provide their product offerings directly to
consumers (free of charge) during invitation-only events,
as specified, to additionally grant the same privilege to
(1) a distilled spirits manufacturer's agent, (2) a holder
of a distilled spirits importer's general license who does
not also hold a distilled spirits wholesaler's license, (3)
a holder of a distilled spirits rectifier's general
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license, and (4) a holder of an out-of-state distilled
spirit's shipper's certificate.
ANALYSIS : Existing law establishes the Department of
Alcoholic Beverage Control (ABC) and grants it exclusive
authority to administer the provisions of the ABC Act in
accordance with laws enacted by the Legislature.
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
off-sale). Tied-house law generally prohibits alcoholic
beverage licensees from giving away any gift, premium or
free goods in connection with the sale or distribution of
alcoholic beverages.
Existing law, until January 1, 2014, permits a
manufacturer, winegrower, rectifier, or distiller, or any
authorized agent of that person to provide, free of charge,
entertainment, food, and distilled spirits, wine, or
nonalcoholic beverages to consumers over 21 years of age at
an invitation-only event in connection with the sale or
distribution of wine or distilled spirits, as specified.
Existing law also authorizes the Department of ABC to
impose a fee to cover the costs of administering such
events.
Comments
This bill is intended to correct a minor oversight
discovered since enactment of AB 2293 (De Leon), Chapter
638, Statutes of 2008. AB 2293 was introduced to allow
distilled spirits manufacturers and winegrowers to provide
their product offerings directly to consumers, by
invitation only, within a controlled environment for which
there is a caterer's permit authorization. The bill
contained significant restrictive criteria in order to
provide appropriate controls on promotional events.
According to the bill's sponsor, the Distilled Spirits
Council of the United States (DISCUS), the list of
licensees authorized by AB 2293 to provide supplier hosted
promotion and entertainment was not inclusive of all DISCUS
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member companies. In fact, the sponsor claims that since
enactment of AB 2293, certain licensees have not been able
to secure a permit from the Department of ABC to hold an
event. According to the sponsor, this bill is simply
intended to correct this shortcoming and follow through on
the original intent of AB 2293.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Enforcement/oversight unknown, less than
$150Special*
potentially offset by fee revenue
* Alcoholic Beverage Control Fund
SUPPORT : (Verified 5/4/10)
Distilled Spirits Council of the United States (source)
TSM:mw 5/4/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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