BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1393|
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                                    CONSENT


          Bill No:  SB 1393
          Author:   Negrete McLeod (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  11-0, 4/10/12
          AYES:  Wright, Anderson, Berryhill, Calderon, Cannella, 
            Corbett, De Le�n, Hernandez, Padilla, Walters, Yee
          NO VOTE RECORDED:  Evans, Wyland


           SUBJECT  :    Alcoholic beverage control:  licensees:  
          returns

           SOURCE  :     California Beer & Beverage Distributors


           DIGEST  :    This bill makes the following changes to an 
          existing provision of the Alcoholic Beverage Control Act 
          that currently allows a manufacturer or wholesaler of beer 
          to accept the return of recalled beer for health or safety 
          issues and exchange the beer or credit the retailer:  (1) 
          permits the return of recalled beer that is considered by a 
          manufacturer, importer, or governmental entity to present 
          health or safety issues if distributed, offered for sale or 
          sold in the state; and (2) allows the seller of beer to 
          exchange with the manufacturer or importer the returned 
          beer and the seller of beer's inventory that was recalled 
          or considered to present health or safety issue for 
          identical product provided safe inventory is available.  If 
          safe product is unavailable then the manufacturer or 
          importer must provide the seller of beer a refund or a 
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                                                               SB 1393
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          credit memorandum.

           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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  4/11/12)

          California Beer & Beverage Distributors (source)

           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          this bill is simply intended to allow a retailer to return 
          beer that has been recalled or declared to pose a health 
          and safety threat to the public by the manufacturer, 
          importer, or governmental entity, for a full exchange, 
          refund or credit memorandum.


          DLW:do  4/11/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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