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SB-918 Alcoholic beverages: special nonprofit sales license: wine labels.(2019-2020)

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Date Published: 05/07/2020 09:00 PM
SB918:v98#DOCUMENT

Amended  IN  Senate  May 07, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 918


Introduced by Committee on Governmental Organization (Senators Dodd (Chair), Allen, Archuleta, Borgeas, Bradford, Chang, Galgiani, Glazer, Hill, Hueso, Jones, Nielsen, Portantino, Rubio, Wiener, and Wilk)

February 04, 2020


An act to amend Section 23786 of of, and to add Section 25248 to, the Business and Professions Code, relating to alcoholic beverages.


LEGISLATIVE COUNSEL'S DIGEST


SB 918, as amended, Committee on Governmental Organization. Alcoholic beverages: special nonprofit sales license. license: wine labels.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law authorizes the department to issue particular types of licenses to nonprofit entities, including a special nonprofit sales license to a nonprofit mutual benefit corporation, as described in specified provisions of the Revenue and Taxation Code. For this type of license, existing law requires the governing board of the entity to be composed of certain parties at a public university in Yolo County that offers courses in viticulture and enology in its curriculum.
This bill would delete the reference to the Revenue and Taxation Code, described above, and instead reference the Nonprofit Mutual Benefit Corporation Law. The bill would also authorize issuance of a special nonprofit sales license to a nonprofit public benefit corporation, as described in the Nonprofit Public Benefit Corporation Law.
The Alcoholic Beverage Control Act prescribes labeling requirements for containers of alcoholic beverages sold within this state, including those imposed on wines labeled with an American Viticultural Area, as established pursuant to federal law, that is located entirely within specified counties. The act generally provides that a violation of its provisions is a misdemeanor if not otherwise specified.
This bill would require any wine bottled on or after January 1, 2023, labeled with an American Viticultural Area that is located entirely within the County of Mendocino to bear the designation “Mendocino County” on the label in specified type sizes that are determined in relation to the size of the container, except as specified. The bill would authorize the Department of Alcoholic Beverage Control to suspend or revoke the license of a person who violates these provisions, but would otherwise exempt a violation of these provisions from civil or criminal penalties. The bill would also prescribe exceptions to these provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 23786 of the Business and Professions Code is amended to read:

23786.
 (a) The department may issue a special nonprofit sales license to a nonprofit mutual benefit corporation, as described in the Nonprofit Mutual Benefit Corporation Law (Part 3 (commencing with Section 7110) of Division 2 of Title 1 of the Corporations Code), or a nonprofit public benefit corporation, as described in the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code), that has a board membership composed of the Dean of the College of Agricultural and Environmental Sciences, or their designee, the Chair of the Department of Viticulture and Enology, or their designee, and the Chair of the Department of Food Science and Technology, or their designee, of the public university located within the county of the 28th class that includes courses in viticulture and enology in its curriculum.
(b) A special nonprofit sales license authorizes the licensee to do all of the following:
(1) Accept the transfer of, and take title to, up to 20,000 gallons of wine per year produced by the public university described in subdivision (a), notwithstanding that the public university does not hold any license issued pursuant to this division. For purposes of this section, “produced” includes wine donated to, or purchased by, the public university for educational or experimental purposes and that are thereafter treated or processed by the public university.
(2) Sell wine received pursuant to paragraph (1) to consumers for consumption off the licensed premises or to other licensees authorized to sell wine.
(3) Give licensees samples of the wine it sells, subject to the limitations in subdivision (a) of Section 23386 and any department regulations.
(c) The special nonprofit sales license does not authorize the licensee to purchase or otherwise obtain wine from a licensee or other manufacturer or seller of wine, except as specified in this section.
(d) A public university, as described in subdivision (a), may transfer wine produced by the public university to a special nonprofit sales licensee.

SEC. 2.

 Section 25248 is added to the Business and Professions Code, to read:

25248.
 (a) Any wine labeled with an American Viticultural Area established pursuant to Part 9 (commencing with Section 9.1) of Title 27 of the Code of Federal Regulations that is located entirely within the County of Mendocino shall bear the designation “Mendocino County” on the label in a type size not smaller than two millimeters on containers of more than 187 milliliters or not smaller than one millimeter on containers of 187 milliliters or less.
(b) The department may suspend or revoke the license of any person who violates this section.
(c) This section shall not apply to any wine labeled with a viticultural area appellation of origin established pursuant to Part 9 (commencing with Section 9.1) of Title 27 of the Code of Federal Regulations when the name of the appellation includes “Mendocino.”
(d) This section shall apply to wines bottled on or after January 1, 2023.
(e) Except as provided in subdivision (b), a violation of this section shall not subject a person to any civil or criminal penalties pursuant to this division.