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SB-561 Alcoholic beverage licensees: manufacturers and retailers: shared common licensed area.(2021-2022)



Current Version: 03/05/21 - Amended Senate Compare Versions information image


SB561:v98#DOCUMENT

Amended  IN  Senate  March 05, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 561


Introduced by Senator Dodd

February 18, 2021


An act to amend add Section 23320 of 25607.1 to the Business and Professions Code, relating to alcoholic beverages.


LEGISLATIVE COUNSEL'S DIGEST


SB 561, as amended, Dodd. License fees: fee list: transmission. Alcoholic beverage licensees: manufacturers and retailers: shared common licensed area.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the issuance of alcoholic beverage licenses and generally prohibits a licensee from having upon the licensed premises any alcoholic beverages other than the alcoholic beverage that the licensee is authorized to sell at the licensed premises. Existing law prescribes certain exceptions to this prohibition. Existing law also generally prohibits certain licensees from paying a retailer for advertising. Unless otherwise specified, a violation of the act is a misdemeanor.
This bill would authorize a manufacturer to share a common licensed area with multiple retailers, subject to various requirements, including that a retailer not sell or serve any alcoholic beverages that are manufactured, produced, bottled, processed, imported, rectified, distributed, represented, or sold by the manufacturer, as provided. The bill would permit a manufacturer, in connection with the operation of the shared common licensed area only, to advertise or promote the retailers sharing the common licensed area. The bill would permit a manufacturer to have on the shared common licensed area alcoholic beverages that would not otherwise be permitted on the manufacturer’s licensed premises. By expanding the scope of an existing crime, the bill would impose a state-mandated local program.
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.

Existing law, the Alcoholic Beverages Control Act, administered by the Department of Alcoholic Beverage Control, regulates the granting of licenses for the manufacture, distribution, and sale of alcoholic beverages within the state. That law, among other things, establishes various fees for a new permanent license and annual fees, depending on the type of license, as specified. Existing law authorizes the department to adjust these fees annually, based on the California Consumer Price Index, as specified. When fees are so adjusted, existing law requires that the department publish the new fee list on its internet website and to transmit the new fee list in writing to the Chairperson of the Joint Legislative Budget Committee no later than January 10 of the year before fee list becomes effective.

This bill would require the department to also transmit the new fee list to the Chairpersons of the Assembly and Senate Committees on Governmental Organizational, as provided.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NOYES  

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


SECTION 1.

 Section 25607.1 is added to the Business and Professions Code, to read:

25607.1.
 (a) Notwithstanding any provision to the contrary, a manufacturer may share a common licensed area with multiple retailers, subject to all of the following conditions:
(1) A retailer sharing a common licensed area with a manufacturer shall not sell or serve any alcoholic beverages that are manufactured, produced, bottled, processed, imported, rectified, distributed, represented, or sold by the manufacturer, directly or indirectly. This prohibition shall apply to all licensed premises owned or operated, in whole or in part, by the retailer anywhere in the state.
(2) All retailers sharing the common licensed area shall hold the same license type. Nothing in this section shall authorize any of the retailers to exercise license privileges that are not authorized by their license.
(3) All licensees holding licenses within the shared common licensed area shall be jointly responsible for compliance with all laws that may subject their license to disciplinary action.
(b) The manufacturer may, in connection with the operation of the shared common licensed area only, advertise or promote the retailers sharing the common licensed area and may share in the cost of the operation of the shared common licensed area. The manufacturer shall not give or furnish any other thing of value to the retailers.
(c) Notwithstanding Section 25607, the manufacturer may have on the area of its licensed premises that encompass the shared common licensed area alcoholic beverages that would not otherwise be permitted on the manufacturer’s licensed premises. This provision does not authorize the possession of alcoholic beverages not otherwise permitted on the manufacturer’s licensed premises that are not part of the shared common licensed area.
(d) This section does not authorize a manufacturer to share a common licensed area with a single retailer or with multiple retailers under common ownership, in whole or in part.
(e) This section is intended to be a narrow exception to the separation of manufacturers and retailers. This section shall be narrowly construed.

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.