Bill Text: CA AB636 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Alcoholic beverages: tied-house restrictions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-09-23 - Chaptered by Secretary of State - Chapter 329, Statutes of 2013. [AB636 Detail]

Download: California-2013-AB636-Amended.html

---

BILL NUMBER: AB 636	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 15, 2013

INTRODUCED BY   Assembly Member Hall

                        FEBRUARY 20, 2013

   An act to amend Section  25502.2   25503.4
 of the Business and Professions Code, relating to alcoholic
beverages.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 636, as amended, Hall. Alcoholic beverages: tied-house
restrictions.
   (1) Existing law, known as tied-house restrictions, prohibits
specified licensees from furnishing, giving, or lending money or
other things of value, directly or indirectly, to a person engaged in
operating, owning, or maintaining an off-sale licensed premises.
Existing law permits, until January 1,  2015  
2016  , the appearance of a person employed or engaged by an
authorized licensee at a promotional event held at the premises of an
off-sale retail licensee for the purposes of providing autographs,
subject to specified conditions. Existing law generally prohibits a
winegrower, a California winegrower's agent, importer, or other
specified parties from providing a licensee alcoholic beverages as a
free good as a part of any sale or transaction involving alcoholic
beverages or furnishing anything of value to a licensee for specified
purposes. Existing law excepts from this prohibition a winegrower,
California winegrower's agent, importer, or other specified parties
when conducting or participating in an instructional event for
consumers held at a retailer's premises featuring wines produced by
or for the winegrower or imported by the importer, subject to
specified conditions. The Alcoholic Beverage Control Act provides
that a violation of any of its provisions for which another penalty
or punishment is not specifically provided is a misdemeanor.
   This bill would permit  , until January 1, 2015, under
specified conditions, the appearance of a person for the purpose of
providing autographs at an instructional event for consumers that
 a winegrower, California winegrower's agent, importer, or
other specified parties  conduct, or participate in, that is
held at a retailer's premises   appearing at an
instructional event, as specified, to provide autographs to consumers
on consumer advertising specialties given by the person to a
consumer or on any item provided by a consumer  . The bill would
expand the definition of an existing crime, thus imposing a
state-mandated local program.   The bill would also
prohibit a requirement of the purchase of any alcoholic beverage in
connection with the autographing. 
   (2) 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.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 25503.4 of the  
Business and Professions Code   is amended to read: 
   25503.4.  (a) Notwithstanding any other provision of this
division, a winegrower, California winegrower's agent, wine importer,
or any director, partner, officer, agent, or representative of that
person, may conduct or participate in, and serve wine at, an
instructional event for consumers held at a retailer's premises
featuring wines produced by or for the winegrower or, imported by the
wine importer, subject to the following conditions:
   (1) No premium, gift, free goods, or other thing of value may be
given away in connection with the instructional event by the
winegrower, California winegrower's agent, wine importer, or
retailer, except as authorized by this division.
   (2) No alcoholic beverages may be given away in connection with
the instructional event except that minimal amounts of wine, taken
from barrels or from tanks, may be supplied and provided as samples
at the instructional event. A person authorized by subdivision (a)
may also provide no more than three one-ounce tastes of wine per
consumer at the instructional event from bottles of wine provided by
the authorized person. For purposes of this section, minimal amounts
of the samples or tastes provided at the instructional event do not
constitute a thing of value. Following the instructional event, any
unused wine provided by the authorized person shall be removed from
the retailer's premises by the authorized person.
   (3) No alcoholic beverages may be sold at the instructional event,
except that orders for the sale of wine may be accepted by the
winegrower if the sales transaction is completed at the winegrower's
premises. 
   (b) Notwithstanding Section 25502.2, a person identified in
subdivision (a) appearing at an instructional event described in
subdivision (a) may, in addition to other permitted activities,
provide autographs to consumers on consumer advertising specialties
given by the person to a consumer or on any item provided by a
consumer. No purchase of any alcoholic beverage shall be required in
connection with such autographing.  
   (b) 
    (c)  Notwithstanding any other provision of this
division, a winegrower, California winegrower's agent, or wine
importer, in advance of an instructional event for consumers being
held at a retailer's premises, may list in an advertisement the name
and address of the retailer, the names of the wines being featured at
the instructional event, and the time, date, and location of, and
other information about, the instructional event, provided:
   (1) The advertisement does not also contain the retail price of
the wines.
   (2) The listing of the retailer's name and address is the only
reference to the retailer in the advertisement and is relatively
inconspicuous in relation to the advertisement as a whole. Pictures
or illustrations of the retailer's premises and laudatory references
to the retailer in these advertisements are not hereby authorized.

   (c) 
    (d)  Notwithstanding any other provision of this
division, the name and address of a winegrower, wine importer, or
winegrower's agent licensee, the brand names of wine being featured,
and the time, date, location, and other identifying information of a
wine promotional lecture at retail premises may be listed in advance
of the event in an advertisement of the off-sale or on-sale retail
licensee. 
   (d) 
    (e)  Nothing in this section authorizes a winegrower,
wine importer, or winegrower's agent licensee to share in the costs,
if any, of the retailer licensee's advertisement. 
   (e) 
    (f)  Nothing in this section authorizes any person to
consume any alcoholic beverage on any premises licensed with an
off-sale retail license. 
  SECTION 1.    Section 25502.2 of the Business and
Professions Code is amended to read:
   25502.2.  (a) A person employed or engaged by an authorized
licensee may appear at a promotional event at the premises of an
off-sale retail licensee, or at an instructional event held at a
retailer's premises pursuant to Section 25503.4, for the purpose of
providing autographs to consumers at the promotional event only under
the following conditions:
   (1) A purchase from the off-sale retail licensee is not required.
   (2) A fee is not charged to attend the promotional event.
   (3) Autographing may only be provided on consumer advertising
specialities given by the authorized licensee to a consumer or on any
item provided by the consumer.
   (4) The promotional event does not exceed four hours in duration.
   (5) There are no more than two promotional events per calendar
year involving the same authorized licensee at a single premises of
an off-sale retail licensee.
   (6) The off-sale retail licensee may advertise the promotional
event to be held at its licensed premises.
   (7) An authorized licensee may advertise in advance of the
promotional event only in publications of the authorized licensee,
subject to the following conditions:
   (A) The advertising only lists the name and address of the
off-sale retail licensee, the name of the alcoholic beverage product
being featured at the promotional event, and the time, date, and
location of the off-sale retail licensee location where the
promotional event is being held.
   (B) The listing of the off-sale retail licensee's name and address
is the only reference to the off-sale retail licensee in the
advertisement and is relatively inconspicuous in relation to the
advertisement as a whole, and the advertisement does not contain any
pictures or illustrations of the off-sale retail licensee's premises
or laudatory references to the off-sale retail licensee.
   (8) A wholesaler does not directly or indirectly underwrite, share
in, or contribute to any costs related to the promotional event,
except that a beer and wine wholesaler that holds at least six
distilled spirits wholesaler licenses may directly or indirectly
underwrite, share in, or contribute to any costs related to a
promotional event for which the wholesaler employs or engages the
person providing autographs to consumers at the promotional event.
   (9) The authorized licensee notifies the department in writing of
the promotional event at least 30 days in advance of the promotional
event.
   (10) The authorized licensee maintains records necessary to
establish its compliance with this section.
   (b) For purposes of this section, "authorized licensee" means a
manufacturer, winegrower, manufacturer's agent, California winegrower'
s agent, rectifier, importer, brandy manufacturer, brandy importer,
or wholesaler.
   (c) This section shall remain in effect only until January 1,
2016. 
  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.