BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1393|
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UNFINISHED BUSINESS
Bill No: SB 1393
Author: Negrete McLeod (D)
Amended: 6/28/12
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
SENATE FLOOR : 39-0, 4/16/12 (Consent)
AYES: Alquist, Anderson, Berryhill, Blakeslee, Calderon,
Cannella, Corbett, Correa, De Le�n, DeSaulnier, Dutton,
Emmerson, Evans, Fuller, Gaines, Hancock, Harman,
Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu,
Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio,
Simitian, Steinberg, Strickland, Vargas, Walters, Wolk,
Wright, Wyland, Yee
NO VOTE RECORDED: Runner
ASSEMBLY FLOOR : 79-0, 7/2/12 - See last page for vote
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
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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
credit memorandum.
Assembly Amendments authorize an alcoholic beverage
licensee to accept the return of unsold and unopened beer
from an organization that has obtained a temporary daily
license, and permit the licensee to 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.
ANALYSIS :
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.
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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.
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 product
which is "considered" by a manufacturer, importer, or
governmental entity to present health or safety issues.
Related Legislation
SB 487 (Negrete McLeod, 2011) adds a new provision to the
Act that permits the return of unsold and unopened beer
from an organization that obtained a temporary license.
Currently, the bill is pending in Assembly Governmental
Organization Committee.
Prior Legislation
SB 192 (Negrete McLeod, 2009) is identical to SB 487 (see
above). SB 192 was amended in the Assembly and held in the
Assembly Rules Committee.
AB 3071 (Assembly Governmental Organization Committee),
Chapter 508, Statutes of 2008, among other things,
authorized beer that is recalled for health or safety
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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 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.
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.
ASSEMBLY FLOOR : 79-0, 07/02/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell,
Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Roger
Hern�ndez, Hill, Huber, Hueso, Huffman, Jeffries, Jones,
Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor,
Mendoza, Miller, Monning, Morrell, Nestande, Nielsen,
Norby, Olsen, Pan, Perea, V. Manuel P�rez, Portantino,
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Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Mitchell
DLW:m 7/3/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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