BILL ANALYSIS �
SB 1393
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SENATE THIRD READING
SB 1393 (Negrete McLeod)
As Amended June 28, 2012
Majority vote
SENATE VOTE : 39-0
GOVERNMENTAL ORGANIZATION 17-0
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|Ayes:|Hall, Nestande, Atkins, | | |
| |Block, Blumenfield, | | |
| |Chesbro, Cook, Galgiani, | | |
| |Garrick, Gatto, Hill, | | |
| |Jeffries, Ma, Perea, V. | | |
| |Manuel P�rez, Silva, | | |
| |Torres | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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. In addition, permits the return of unsold and unopened
beer from an organization that obtained a temporary license, as
specified. 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.
3)Authorizes an alcoholic beverage licensee to accept the return
of unsold and unopened beer from an organization that has
obtained a temporary daily license. Permits the licensee to
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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.
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 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
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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 (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 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. Currently, SB 487 is pending in Assembly Governmental
Organization Committee.
Prior legislation : SB 192 (Negrete McLeod) of 2009, is identical
to SB 487 of 2011. SB 192 was 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:
0004221
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