BILL ANALYSIS �
Bill No: SB
487
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
SB 487 Author: Negrete McLeod
As Introduced: February 17, 2011
Hearing Date: March 22, 2011
Consultant: Art Terzakis
SUBJECT
Alcoholic Beverages: returns
DESCRIPTION
SB 487 adds a new provision to the Alcoholic Beverage
Control Act (ABC) that permits the return of unsold and
unopened beer from an organization that obtained a
temporary license. Specifically, this measure:
1. Authorizes an alcoholic beverage licensee to accept the
return of unsold and unopened beer from 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
has been 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.
EXISTING LAW
Existing law permits the return of beer for errors in
delivery, health and safety recalls and the identical
SB 487 (Negrete McLeod) continued
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exchange of out-of-code products.
Existing law also authorizes a wholesaler or manufacturer
of beer to accept the return of quantities 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.
Existing law authorizes the 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.
BACKGROUND
Purpose : According to the author's office, this measure has
been introduced on behalf of the California Beer and
Beverage Distributors, whose members have experienced
increasing demands to accept the return of 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. SB 487 would permit the return of
unsold and unopened beer by daily licensees to the licensee
from whom the beer was purchased.
PRIOR/RELATED LEGISLATION
SB 192 (Negrete McLeod) 2009-10 Session. Identical to SB
487 of 2011. (Gutted in the Assembly - relating to career
technical education - in late August and held in Rules
Committee) Senate G.O. vote on 4/14/09 (13-0); floor vote
on 4/20/09 (37-0).
AB 3071 (Assembly G.O. Committee) Chapter 508, Statutes of
SB 487 (Negrete McLeod) continued
Page 3
2008. Among other things, authorized 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, permitted 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. Allowed 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 ABC.
SB 452 (Maddy) Chapter 273, Statutes of 1998. Among other
things, authorized 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.
SUPPORT: California Beer & Beverage Distributors (sponsor)
OPPOSE: None on file as of March 18, 2011.
FISCAL COMMITTEE: No
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