Amended in Assembly January 6, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 520

Introduced by Assembly Member Chesbro

February 20, 2013

begin delete An act to amend Section 23399.3 of the Business and Professions Code, relating to alcoholic beverages. end delete begin insert An act to amend Section 25503.5 of, and to add Section 25503.57 to, the Business and Professions Code, relating to alcoholic beverages. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 520, as amended, Chesbro. begin delete Alcoholic beverages: licenses. end delete begin insert Alcoholic beverages: instruction: tastings. end insert

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The Alcoholic Beverage Control Act permits a winegrower or distilled spirits manufacturer, or its authorized agent, to instruct consumers at an on-sale retail licensed premises authorized to sell its product on the subject of wine or distilled spirits, including, but not limited to, the history, nature, values, and characteristics of those beverages, as provided. Existing law authorizes the instruction to include tastings of wine or distilled spirits, subject to limitations on the amounts that may be provided to the consumers. The act provides that a violation of its provisions is a misdemeanor, unless otherwise specified.

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This bill would expand the types of licensees that may provide instructional tastings events regarding wine or distilled spirits at on-sale retail licensed premises and would place additional restrictions on the instructional tastings events, including restrictions on the types of advertising that may be conducted prior to the instructional tasting event. By expanding the definition of a crime, this bill would impose a state-mandated local program.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Existing law authorizes a special beer and wine license for hospitals, convalescent homes, and rest homes that permits the sale or service of beer and wine purchased from a licensed winegrower or beer and wine wholesaler only to patients or residents of those facilities. Existing law provides that a rest home includes an apartment building, whether licensed or unlicensed, that rents exclusively to persons age 62 and older and provides one to 3 meals daily for tenants.

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This bill would replace the term “rest homes” with “senior care facilities” for purposes of these provisions.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 25503.5 of the end insert begin insert Business and Professions
Code end insert begin insert is amended to read: end insert

25503.5.  

(a) A winegrower, beer manufacturer, or a beer and
wine wholesaler may, without charge, instruct licensees and their
employees, or conduct courses of instruction for licensees and
their employees, on the subject of wine or beer, including but not
limited to, the history, nature, values, and characteristics of wine
or beer, the use of wine lists, and the methods of presenting and
serving wine or beer. The winegrower, beer manufacturer, or beer
and wine wholesaler may furnish wine or beer and the equipment,
materials and utensils that may be required for use in connection
with the instruction or courses of instruction.

(b) A distilled spirits manufacturer, distilled spirits
manufacturer’s agent, distilled spirits general rectifier, or distilled
spirits general importer may, without charge, instruct licensees
and their employees, or conduct courses of instruction for licensees
and their employees, on the subject of distilled spirits, including,
but not limited to, the history, nature, values, and characteristics
of distilled spirits, and the methods of presenting and serving
distilled spirits. The distilled spirits manufacturer or distilled spirits
manufacturer’s agent may furnish distilled spirits and the
equipment, materials, and utensils that may be required for use in
connection with the instruction or courses of instruction.

begin delete end delete begin delete

(c) A winegrower or distilled spirits manufacturer, or its
authorized agent may instruct consumers at an on-sale retail
licensed premises authorized to sell its product with the permission
of the retail on-sale licensee. The instruction may include, without
limitation, the history, nature, values, and characteristics of the
product and the methods of presenting and serving the product.
The instruction of consumers may include the furnishing of not
more than three tastings to any individual in one day. A single
tasting of distilled spirits may not exceed one-fourth of one ounce
and a single tasting of wine may not exceed one ounce. The
winegrower or distilled spirits manufacturer, or its authorized agent
shall remove any unfinished alcoholic beverages that he or she
provided following the instruction. Nothing in this subdivision
shall limit the giving away of samples pursuant to subdivision (a)
of Section 23386.

end delete begin delete end delete begin delete

(d)

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begin insert (c) end insert  The instruction or courses of instruction, authorized in
subdivision (a) or (b), may be given at the premises of the
winegrower, beer manufacturer, beer and wine wholesaler, distilled
spirits manufacturer, distilled spirits manufacturer’s agent, distilled
spirits general rectifier, distilled spirits general importer or of a
licensee, including an on-sale retail licensee, or elsewhere.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 25503.57 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 25503.57. end insert   

(a) (1) An authorized licensee, or its designated
representative, may instruct consumers at an on-sale retail licensed
premises authorized to sell its product with the permission of the
retail on-sale licensee. The instruction may include, without
limitation, the history, nature, values, and characteristics of the
wine or distilled spirits and the methods of presenting and serving
the wine or distilled spirits.

(2) The instruction of consumers may include the furnishing of
not more than three tastings to any individual in one day. A single
tasting of distilled spirits may not exceed one-fourth of one ounce
and a single tasting of wine may not exceed one ounce.

(3) The authorized licensee, or its designated representative,
shall either supply the wine or distilled spirits to be tasted during
the instructional tasting event or purchase the wine or distilled
spirits from the retail on-sale licensee at the original invoiced cost.

(4) The authorized licensee, or its designated representative,
shall remove any unfinished alcoholic beverages that were
provided by the authorized licensee, or its designated
representative, following the instruction.

(5) Nothing in this subdivision shall limit the giving away of
samples pursuant to subdivision (a) of Section 23386.

(b) For purposes of this section, “authorized licensee” means
a winegrower, California winegrower’s agent, beer and wine
importer general, beer and wine wholesaler, wine rectifier, distilled
spirits manufacturer, distilled spirits manufacturer’s agent, distilled
spirits importer general, distilled spirits rectifier, distilled spirits
general rectifier, rectifier, out-of-state distilled spirits shipper’s
certificate holder, distilled spirits wholesaler, brandy
manufacturer, brandy importer, or California brandy wholesaler.
“Authorized licensee” shall not include an entity that solely holds
a combination of a beer and wine wholesaler license and an
off-sale beer and wine retail license or holds those licenses solely
in combination with any license not listed in this paragraph, or
holds a limited off-sale retail wine license:

(c) Except as otherwise provided in this division or by the rules
of the department, no premium, gift, free goods, or other thing of
value shall be given away by an authorized licensee or its
designated representative in connection with an instructional
tasting event conducted pursuant to this section that includes
tastings of wine or distilled spirits.

(d) (1) In addition to any point-of-sale advertising or other
advertising items allowed under this division or under rules of the
department, an authorized licensee or its designated representative,
in his or her absolute discretion and with permission of the retail
on-sale licensee upon whose premises the instructional tasting
event will be held, may list in an advertisement to the general
public the name and address of the on-sale retail licensee, the
names of the wines or distilled spirits being featured at the
instructional tasting event, and the time, date, and location of, and
other information about, the instructional tasting event, provided
that both of the following apply:

(A) The advertisement does not contain the retail price of the
alcoholic beverages.

(B) The listing of the on-sale retail licensee’s name and address
is the only reference to the on-sale retail licensee in the
advertisement.

(2) Pictures or illustrations of the on-sale retail licensee’s
licensed premises and laudatory references to the on-sale retail
licensee in these advertisements are not authorized. Nothing in
this section shall authorize an authorized licensee or its designated
representative to share in the costs, if any, of the on-sale retail
licensee.

(e) An on-sale retail licensee may advertise an instructional
tasting event to the general public. The costs of this advertising
shall be borne solely by the on-sale retail licensee. Advertising
permitted by this subdivision includes flyers, newspaper ads,
Internet communications, and interior signage.

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begin insert

begin insert SEC. 3. end insert   

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No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

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begin delete

SECTION 1.  

Section 23399.3 of the Business and Professions
Code is amended to read:

23399.3.  

(a) An on-sale special beer and wine license for
hospitals, convalescent homes, and senior care facilities, authorizes
the sale or service of beer and wine purchased from a licensed
winegrower or beer and wine wholesaler only to patients or
residents of the licensed hospital, convalescent home, or senior
care facility. This license shall not be transferable from person to
person and no off-sale privileges shall be exercised under this a
license. Nothing in this section shall be construed to require a
license for the service of beer and wine purchased at retail.

(b) As used in this section, “rest home” includes an apartment
building, whether licensed or unlicensed, that rents exclusively to
persons age 62 and older and provides one to three meals daily for
tenants.

end delete