BILL ANALYSIS �
AB 252
Page 1
Date of Hearing: March 30, 2011
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
AB 252 (Charles Calderon) - As Introduced: February 3, 2011
SUBJECT : Alcoholic beverage control: licensees.
SUMMARY : Provides for an additional authorization under the
Alcoholic Beverage Control Act (Act) by allowing a distilled
spirits manufacturer's agent to provide their product free of
charge to consumers during invitation-only events, as defined.
Specifically, this bill :
1) Modifies an existing provision of the 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 a
distilled spirits manufacturer's agent.
EXISTING LAW :
1) 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.
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
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.
3) Permits until January 1, 2014, 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.
4) Authorizes ABC to impose a fee to cover the costs of
AB 252
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administering such events.
FISCAL EFFECT : Unknown.
COMMENTS :
According to the author, this bill is intended to correct a
minor oversight discovered since the enactment of AB 2293 (De
Leon), Chapter 638, Statutes of 2008. The bill allowed
distilled spirits manufacturers and winegrowers to provide their
product offerings free of charge to consumers, at an invitation
only event, where a caterer's permit has been authorized by ABC.
The bill contained restrictive criteria in order to provide
appropriate controls relating to these 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 events did not include all its member companies.
For example, the holder of a distilled spirits manufacturer's
agent license has not been able to secure a license from ABC to
participate in these promotional events. DISCUS states, this
bill will correct this omission and will codify the original
intent of AB 2293.
According to ABC, since the enactment of AB 2293 in 2009, only 5
event authorizations have been granted. ABC has not identified
any enforcement problems and no disciplinary action has been
taken relating to these events. The sponsor states, the low
number of invitation-only events is directly related to the
criteria in AB 2293 that clearly defines how these private
parties must be operated by the licensee.
Prior legislation : SB 1323 (Walters), 2009-2010 Legislative
Session. Would have modified an existing provision of the 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 license; and, (4) a
holder of an out-of-state distilled spirits shipper's
certificate. (Held in Assembly Appropriations Committee)
AB 252
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AB 2293 (De Leon), Chapter 638, Statutes of 2008. Authorized 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 at an invitation-only event
in connection with the sale or distribution of wine or distilled
spirits. Several conditions were placed on these events
including the limitation of 400 attendees per event, a
prohibition of persons under age 21, and a maximum duration of
four hours. The authorization will sunset on January 1, 2014.
REGISTERED SUPPORT / OPPOSITION :
Support
Distilled Spirits Council of the United States (DISCUS)
Opposition
California Council on Alcohol Problems
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531