BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 487|
|Office of Senate Floor Analyses | |
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CONSENT
Bill No: SB 487
Author: Negrete McLeod (D)
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 12-0, 3/22/11
AYES: Wright, Anderson, Berryhill, Calderon, Cannella,
Corbett, De Le�n, Evans, Padilla, Strickland, Wyland, Yee
NO VOTE RECORDED: Hernandez
SUBJECT : Alcoholic beverages: returns
SOURCE : California Beer and Beverage Distributors
DIGEST : This bill 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.
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 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.
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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.
This bill adds a new provision to the 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.
Prior/Related Legislation
SB 192 (Negrete McLeod), 2009-10 Session, is identical to
this bill. (Gutted in the Assembly - relating to career
technical education - in late August and held in Rules
Committee). SB 192 passed the Senate Governmental
Organization Committee on April 14, 2009 (13-0) and the
Senate Floor on April 20, 2009 (37-0).
AB 3071 (Assembly Governmental Organization Committee),
Chapter 508, Statutes of 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
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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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 3/21/11)
California Beer and Beverage Distributors (source)
ARGUMENTS IN SUPPORT : According to the author's office,
this bill 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. This bill permits the
return of unsold and unopened beer by daily licensees to
the licensee from whom the beer was purchased.
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PQ:kc 3/23/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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