BILL NUMBER: SB 778	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 4, 2012

INTRODUCED BY   Senator Padilla

                        FEBRUARY 18, 2011

   An act to  amend Section 20098 of, and to add Section
20098.5 to, the Government Code, relating to public employees'
retirement.   add Section 25600.1 to the Business and
Professions Code, relating to alcoholic beverages. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 778, as amended, Padilla.  Public employees'
retirement: executive retirement.   Alcoholic beverages
licensees: contests and sweepstakes.  
   The Alcoholic Beverage Control Act prohibits any licensee from
giving any premium, gift, or free goods in connection with the sale
or distribution of any alcoholic beverage, except as provided. 

   This bill would permit an authorized licensee to conduct, sponsor,
or participate in a contest or sweepstakes, as defined, offering the
chance to win prizes, if specified conditions are met.  
   The Alcoholic Beverage Control Act provides that a violation of
any of its provisions for which another penalty or punishment is not
specifically provided is a misdemeanor. This bill would expand
existing crimes by imposing additional duties on a licensee under the
act, thus, the bill would impose a state-mandated local program.
 
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Existing law requires the Board of Administration of the Public
Employees' Retirement System to appoint and fix the compensation of
certain employees of the system whose positions are designated as
managerial, notwithstanding specified authority granted to the
Department of Personnel Administration. Existing law requires that
when one of these positions is filled through a general civil service
appointment, it be filled from an eligible list based on an
examination that was held on an open basis, as specified. 

   This bill would recodify the latter provision relating to the
filling of these positions through general civil service
appointments. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 25600.1 is added to the 
 Business and Professions Code   , to read:  
   25600.1.  (a) Notwithstanding any other provision of law, an
authorized licensee may conduct, sponsor, or participate in contests
and sweepstakes, subject to the following conditions:
   (1) A purchase or entry fee shall not be required to enter a
contest or sweepstakes. Entry or extra chances in a contest or
sweepstakes shall not be made available via the purchase of an
alcoholic beverage. Entrance into a contest or sweepstakes shall be
limited to persons 21 years of age or older.
   (2) (A) Caps, cap liners, corks, labels, cartons, cases, or other
material attached to an alcoholic beverage when purchased shall not
be used as an entry to a contest or sweepstakes or as a means of
determining the amount or size of the prize or the winner in a
contest or sweepstakes.
   (B) Neck hangers may carry an entry form only if similar entry
forms are available at the point of sale and are reproduced or an
alternative means of entry is available.
   (3) Scratch-offs, pull tabs, or other means of instant wins in a
contest or sweepstakes shall be not permitted.
   (4) A visit to a retail premises shall not be required to enter a
contest or sweepstakes.
   (5) Alcoholic beverages or anything redeemable for alcoholic
beverages shall not be awarded as a contest or sweepstakes prize.
This paragraph shall not prohibit a contest or sweepstakes where the
prize is cash or the awarding of cash in lieu of a prize that is
tangible personal property or real property.
   (6) A retail licensee shall not serve as the agent of an
authorized licensee by collecting or forwarding entries or awarding
prizes to a contest or sweepstakes winner. A retail licensee may
match entries with numbers or pictures at the point-of-sale on the
licensed premises only if entrants are also offered the opportunity
to use an alternative means to determine prize-winning status.
   (7) A retail licensee, beer and wine wholesaler, or distilled
spirits wholesaler shall not share in, or contribute to, the costs of
a contest or sweepstakes authorized by this section.
   (8) (A) Advertising of a contest or sweepstakes at an on-sale
retail license location or an off-sale retail license location shall
comply with Section 25611.1 or Section 25503.1, respectively.
   (B) Advertising or promotion of a contest or sweepstakes shall not
identify or refer to any retail licensee.
   (C) Advertising or promotion of a contest or sweepstakes shall not
be conducted exclusively in, by, or through any retail licensee or
chain of retail licensees.
   (D) Placement of signs or other advertising of a contest or
sweepstakes in a licensed retail premises shall not be conditioned
upon product placement with the licensed premises.
   (9) Contest or sweepstakes prizes shall not be awarded to any
retail or wholesale licensee or agent, officer, or family member of
any retail or wholesale licensee. This subdivision shall not apply to
a contest or sweepstakes conducted by an authorized licensee and
wholesaler as part of an incentive program.
   (b) For purposes of this section:
   (1) "Authorized licensee" means a winegrower who may or may not
hold another license or licenses under this division.
   (2) "Contest" means a game, contest, puzzle, scheme, plan, or
similar activity that holds out or offers to participants the
opportunity to receive or compete for gifts, prizes, gratuities, or
other things of value as determined by skill, knowledge, or ability
rather than upon random selection.
   (3) "Sweepstakes" means a procedure, activity, or event for the
distribution of anything of value by lot, chance, or random selection
where the odds for winning a prize are equal for each entry.
   (c) Nothing in this section authorizes marketing schemes where
consumers are entitled to an allotment of points based on purchases
made over a period of time that can be redeemed for prizes, things of
value, or additional contest or sweepstakes entries.
   (d) An authorized licensee that violates this section, in addition
to any other penalty imposed by this division, may be prohibited by
the department from conducting, sponsoring, or participating in a
contest or sweepstakes for California residents for a period of 12
months. 
   SEC. 2.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.  
  SECTION 1.    Section 20098 of the Government Code
is amended to read:
   20098.  (a) The board shall appoint and, notwithstanding Sections
19816, 19825, 19826, 19829, and 19832 shall fix the compensation of
an executive officer, a general counsel, a chief actuary, a chief
investment officer, and other investment officers and portfolio
managers whose positions are designated managerial pursuant to
Section 18801.1.
   (b) The executive officer, deputy executive officers, and the
assistant executive officers may administer oaths.
   (c) When fixing the compensation for the positions specified in
subdivision (a), the board shall be guided by the principles
contained in Sections 19826 and 19829, consistent with its fiduciary
responsibility to its members to recruit and retain highly qualified
and effective employees for these positions.
   (d) An individual who held a position designated in subdivision
(a), or was a member of the board, a deputy executive officer, or an
assistant executive officer, shall not, for a period of two years
after leaving that position, for compensation, act as agent or
attorney for, or otherwise represent, any other person, except the
state, by making any formal or informal appearance before, or any
oral or written communication to, the Public Employees' Retirement
System, or any officer or employee thereof, if the appearance or
communication is made for the purpose of influencing administrative
or legislative action or any action or proceeding involving the
issuance, amendment, awarding, or revocation of a permit, license,
grant, contract, or sale or purchase of goods or property. 

  SEC. 2.    Section 20098.5 is added to the
Government Code, to read:
   20098.5.  When a position specified in subdivision (a) of Section
20098 is filled through a general civil service appointment, it shall
be filled from an eligible list based on an examination that was
held on an open basis, and tenure in the position shall be subject to
the provisions of Article 2 (commencing with Section 19590) of
Chapter 7 of Part 2 of Division 5 of Title 2. In addition to the
causes for action specified in that article, the board may take
action under the article for causes related to its fiduciary
responsibility to its members, including the employee's failure to
meet specified performance objectives.