Amended in Assembly August 25, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1895

Introduced by Assembly Member begin delete Quirk end delete begin insert Bonta end insert

February 19, 2014

An act to begin delete add Section 23363.4 to the Business and Professions Code, relating to alcoholic beverages. end delete begin insert amend Section 19985 of the Business and Professions Code, relating to gambling. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1895, as amended, begin delete Quirk end delete   begin insert Bonta end insert . begin delete Alcoholic beverages: sales: distilled spirits. end delete begin insert Gambling Control Act: nonprofit organization fundraisers. end insert

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The Gambling Control Act provides for the licensure and regulation of various legalized gambling activities and establishments by the California Gambling Control Commission and the investigation and enforcement of those activities and establishments by the Department of Justice. Existing law authorizes a nonprofit organization to conduct fundraisers using controlled games as a funding mechanism to further the purposes and missions of the nonprofit organization. Under existing law, the Legislature finds and declares that nonprofit organizations provide important and necessary services to the people of the State of California, and there is a need to provide methods of fundraising to nonprofit organizations.

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This bill would make technical, nonsubstantive changes to that provision.

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The Alcoholic Beverage Control Act contains various provisions regulating the application for, the issuance of, the suspension of, and the conditions imposed upon, alcoholic beverage licenses by the Department of Alcoholic Beverage Control. The act provides that a violation of its provisions is a misdemeanor, unless otherwise specified.

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This bill would authorize distilled spirits manufacturers to sell general merchandise and food, nonalcoholic beverages, and distilled spirits to consumers directly, as provided. Because the violation of a provision of a license is punishable as a misdemeanor, the bill expands the definition of an existing crime, thereby creating 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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Vote: majority. Appropriation: no. Fiscal committee:  begin delete yes end delete begin insert no end insert . State-mandated local program:  begin delete yes end delete begin insert no end insert .

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

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begin insert SECTION 1. end insert   

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begin insert Section 19985 of the end insert begin insert Business and Professions
Code end insert begin insert is amended to read: end insert

19985.  

The Legislature finds and declares begin insert all of end insert the following:

(a) Nonprofit organizations provide important and necessary
services to the people of the State of California with respect to
educational and social begin delete services end delete begin insert services, end insert and there is a need to
provide methods of fundraising to nonprofit organizations so as
to enable them to meet their stated purposes.

(b) The playing of controlled games for the purpose of raising
funds by nonprofit organizations is in the public interest.

(c) Uniform regulation for the conduct of controlled games is
in the best interests of nonprofit organizations and the people of
this state.

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SECTION 1.  

Section 23363.4 is added to the Business and
Professions Code, to read:

23363.4.  

(a) A distilled spirits manufacturer, notwithstanding
any other provisions of this division, may also sell general
merchandise and food, nonalcoholic beverages, and distilled spirits
to consumers for consumption on or off the licensed premises
where sold.

(b) The Legislature finds that it is necessary and proper to
require a separation between manufacturing interests, wholesale
interests, and retail interests in the production and distribution of
alcoholic beverages in order to prevent suppliers from dominating
local markets through vertical integration and to prevent excessive
sales of alcoholic beverages produced by overly aggressive
marketing techniques. The Legislature further finds that the
exception established by this section to the general prohibition
against tied interests shall be limited to its express terms so as not
to undermine the general prohibition, and intends that this section
be construed accordingly.

SEC. 2.  

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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