BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 517|
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THIRD READING
Bill No: AB 517
Author: Hall (D)
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 13-0, 6/28/11
AYES: Wright, Anderson, Berryhill, Calderon, Cannella,
Corbett, De Le�n, Evans, Hernandez, Padilla, Strickland,
Wyland, Yee
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 73-0, 5/2/11 - See last page for vote
SUBJECT : Alcoholic beverages
SOURCE : Author
DIGEST : This bill adds a new provision to the Alcoholic
Beverage Control Act that permits wholesalers and
manufacturers to accept the return of unsold and unopened
beer from an organization that obtained a temporary
license.
ANALYSIS : Existing law permits the return of beer for
errors in delivery, health and safety recalls and the
identical exchange of out-of-code products.
Existing law also authorizes a wholesaler or manufacturer
of beer to accept the return of quantities of discontinued
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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.
Existing law authorizes the Alcoholic Beverage Control Act
(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.
This bill adds a new provision to ABC that permits
wholesalers and manufacturers to accept the return of
unsold and unopened beer from an organization that obtained
a temporary license. Specifically, this bill:
1. Authorizes an alcoholic beverage wholesaler or
manufacturer to accept the return of unsold and unopened
beer purchased from that wholesaler or manufacturer by
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
was paid for in full.
3. Also, 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.
Background
According to the author's office, this bill has been
introduced on behalf of beer distributors in California who
have experienced increasing demands to accept the return of
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unsold or unopened beer from nonprofits 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 bill permits 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 Governmental Organization Committee),
Chapter 508, Statutes of 2008, among other things,
authorizes beer that is recalled for health or safety
issues to be accepted for return at any time from a
retailer and be picked up by the seller of beer. Also,
permits the seller of beer to exchange 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, allows 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
the Department of Alcoholic Beverage Control.
SB 452 (Maddy), Chapter 273, Statutes of 1998, among other
things, authorizes 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
ASSEMBLY FLOOR : 73-0, 5/2/11
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AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Campos, Carter, Cedillo,
Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng,
Feuer, Fletcher, Fong, Furutani, Garrick, Gatto, Gordon,
Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Hill,
Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara,
Logue, Bonnie Lowenthal, Ma, Mansoor, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Norby,
Olsen, Pan, Perea, V. Manuel P�rez, Portantino, Silva,
Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Charles Calderon, Fuentes, Galgiani,
Gorell, Roger Hern�ndez, Mendoza, Vacancy
PQ:kcd 4/25/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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