BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 252 (Calderon)
Hearing Date: 8/15/2011 Amended: As Introduced
Consultant: Maureen Ortiz Policy Vote: GO 12-0
_________________________________________________________________
____
BILL SUMMARY: AB 252 extends an existing provision of the
Alcoholic Beverage Control Act that allows a manufacturer,
winegrower, rectifier, or distiller to provide their product
offerings directly to consumers free of charge during
invitational only events to "distilled spirits manufacturer's
agent".
_________________________________________________________________
____
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Enforcement/oversight ------unknown, less than $50
partially
offset by fee revenue-------- Special*
*Alcoholic Beverage Control Fund
_________________________________________________________________
____
STAFF COMMENTS:
To be eligible to hold an event, licensees must pay an annual
renewal fee of $131, and a caterer's permit fee of $25, and a
$200 fee per event. According to the Department of Alcoholic
Beverage Control (ABC), AB 252 will give authority to about 16
additional licensees, however, it is unlikely that all of those
licensees will apply for eligibility to hold an invitation-only
event. Fee revenue is expected to offset all costs.
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 place on these events
AB 252 (Calderon)
Page 1
including the limitation of 400 attendees per event, a
prohibition of persons under age 21, and a maximum duration of
four hours. Since the enactment of AB 2293, only five event
authorizations have been granted. The authorization will sunset
on January 1, 2014.
AB 252 will extend the same authority to a distilled spirits
manufacturer's agent to also provide their product free of
charge at invitational-only events with the same conditions as
those required by AB 2293.
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 laws generally prohibit alcoholic
beverage licensees from giving away any gift, premium or free
goods in connection with the sale or distribution of alcoholic
beverages. Consequently, AB 252 will expand an existing
tied-house exception which allows alcoholic beverage
manufacturers to hold private promotional events where they
provide food, entertainment, and alcohol to guests.
This bill is similar to SB 1323 (Walters) which was held on the
Assembly Appropriations Committee Suspense file in 2010,
however, that bill would have expanded the existing exemption to
a much larger number of licensees.