BILL ANALYSIS �
SB 1393
Page 1
SENATE THIRD READING
SB 1393 (Negrete McLeod)
As Introduced February 24, 2012
Majority vote
SENATE VOTE :39-0
GOVERNMENTAL ORGANIZATION 17-0
-----------------------------------------------------------------
|Ayes:|Hall, Nestande, Atkins, | | |
| |Block, Blumenfield, | | |
| |Chesbro, Cook, Galgiani, | | |
| |Garrick, Gatto, Hill, | | |
| |Jeffries, Ma, Perea, V. | | |
| |Manuel P�rez, Silva, | | |
| |Torres | | |
| | | | |
-----------------------------------------------------------------
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
issues 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
SB 1393
Page 2
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 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. This bill is keyed non-fiscal by the
Legislative Counsel.
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 ounce 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 Governmental Organization 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. This bill expands upon this privilege by not only
allowing alcohol suppliers to pick up "recalled beer" but
SB 1393
Page 3
product which is "considered" by a manufacturer, importer, or
governmental entity to present health or safety issues.
Related legislation : SB 487 (Negrete McLeod) of 2011, 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 Governmental Organization
Committee)
Prior legislation : SB 192 (Negrete McLeod) of 2009, is
identical to SB 487 of 2011. (Amended in the Assembly and held
in the Assembly Rules Committee.
AB 3071 (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 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 (Governmental Organization 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.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0004274