BILL ANALYSIS �
SB 1393
Page 1
Date of Hearing: June 20, 2012
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
SB 1393 (Negrete McLeod) - As Introduced: February 24, 2012
SENATE VOTE : 39-0
SUBJECT : Alcoholic beverage control: licensees: returns.
SUMMARY : Makes changes to an existing provision of the
Alcoholic Beverage Control Act (Act) that 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. Specifically, this bill :
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.
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 credit
memorandum.
EXISTING LAW
1) Establishes the Department of Alcoholic Beverage Control
(ABC) and grants it exclusive authority to administer the
provisions of the Act in accordance with laws enacted by the
Legislature. This involves licensing individuals and businesses
associated with the manufacture, importation and sale of
alcoholic beverages in this state and the collection of license
fees or occupation taxes for this purpose.
2) Separates the alcoholic beverage industry into three
component parts, or tiers, of manufacturer (including breweries,
wineries and distilleries), wholesaler, and retailer (both
on-sale and off-sale).
3) Permits the return of beer for errors in delivery, health
SB 1393
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and safety recalls and the identical exchange of out-of-code
products.
4) 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 : Unknown.
COMMENTS :
Purpose of the bill : According to the author's office, this
measure is 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.
Background : In April 2008, Boston Beer Company voluntarily
recalled select 12 oz. glass bottles of Sam Adams beer after
their Cincinnati brewery detected defects in some of the
bottles, which might cause small bits of glass to break off and
possibly fall into the bottle. Wholesalers were asked to pick
up the Sam Adams product to inspect code dates, packaging, and
pull the potentially defective bottles off retail shelves. In
2008, AB 3071 (Assembly G.O. Committee) was chaptered which
authorized alcohol suppliers to pick up beer that is recalled
for health or safety issues at any time from a retailer. SB
1393 expands upon this privilege by not only allowing alcohol
suppliers to pick up "recalled beer" but product which is
"considered" by a manufacturer, importer, or governmental entity
to present health or safety issues.
Related legislation : SB 487 (Negrete McLeod) 2011-12 Session.
Would add a new provision to the Act that permits the return of
unsold and unopened beer from an organization that obtained a
temporary license. (Pending in Assembly G.O. Committee)
Prior legislation : SB 192 (Negrete McLeod) 2009-10 Session.
Identical to SB 487 of 2011. (Amended in the Assembly and held
in Assembly Rules Committee.
AB 3071 (Assembly G.O. Committee) Chapter 508, Statutes of 2008.
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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.
AB 3065 (Assembly G.O. Committee) Chapter 910, Statutes of 2006.
Among other things, extended the time frame (from six weeks to
three months) in which a beer manufacturer or beer wholesaler is
authorized to provide assistance to retailers whose equipment,
fixtures, or supplies were lost or damaged as a result of a
natural disaster and whose premises are located in an area
proclaimed to be in a state of disaster by the Governor.
REGISTERED SUPPORT / OPPOSITION :
Support
California Beer & Beverage Distributors
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531