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AB-546 Alcoholic beverages: advertising and brandy tastings.(2023-2024)



Current Version: 10/08/23 - Chaptered

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AB546:v94#DOCUMENT

Assembly Bill No. 546
CHAPTER 532

An act to amend Sections 23363.3, 25503, and 25611.1 of the Business and Professions Code, relating to alcoholic beverages.

[ Approved by Governor  October 08, 2023. Filed with Secretary of State  October 08, 2023. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 546, Villapudua. Alcoholic beverages: advertising and brandy tastings.
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. Under the act, a brandy manufacturer’s license authorizes the licensee to conduct tastings of brandy, subject to certain conditions, including a prohibition on giving tastings on the licensee’s premises in the form of a cocktail or a mixed drink.
This bill would remove that prohibition from the conditions under which a licensee may conduct tastings of brandy.
Existing law, known as tied-house restrictions, prohibits various alcoholic beverage licensees, or their officer, director, or agent, from, among other things, paying, crediting, or compensating a retailer or retailers for advertising, display, or distribution service in connection with the advertising and sale of distilled spirits. Existing law generally provides that a violation of the act is a crime.
This bill would revise the tied-house restriction described above to apply instead to the advertising and sale of alcoholic beverages. The bill would include out-of-state beer manufacturer certificate holders and their officers, directors, and agents among the individuals who are subject to the revised tied-house restriction.
Existing law also prohibits paying money or giving or furnishing anything of value for the privilege of placing or painting a sign or advertisement or window display on or in any premises selling alcoholic beverages at retail.
This bill would expand that restriction to include providing credit or rebate for that privilege, which the bill would also expand to include the placing or painting of a floor display on or in those premises.
Existing law authorizes any manufacturer, winegrower, manufacturer’s agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, or agent of any of those persons to furnish, give, lend, sell, or rent specified types of signs, including signs relating to advertising beer.
This bill would require interior signs advertising beer that are customized for the retailer to be sold by the wholesaler at a price not less than current market price.
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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 Section 23363.3 of the Business and Professions Code is amended to read:

23363.3.
 (a) A brandy manufacturer’s license authorizes the licensee to conduct tastings of brandy produced or bottled by, or produced or bottled for, the licensee, on or off the licensee’s premises.
(b) (1) A brandy manufacturer shall not sell or solicit sales of brandy at the event. The sponsoring organization shall first obtain a permit from the department.
(2) For purposes of this subdivision, “nonprofit organization” does not include any community college or other institution of higher learning, as defined in the Education Code, nor does it include any officially recognized club, fraternity, or sorority, whether or not that entity is located on or off the institution’s campus.
(c) Tastings on the licensee’s premises shall be subject to the following conditions:
(1) Tastings of brandy shall not exceed one-fourth of one ounce and shall be limited to no more than six tastes per individual per day.
(2) Tastings shall only include the products that are authorized to be produced or bottled by or for the licensee.
(3) A person under 21 years of age shall not serve tastes of brandy.
(d) Notwithstanding Section 25600, the licensee may provide brandy without charge for any tastings conducted pursuant to this section. The licensee may charge for tastings conducted by the licensee on its licensed premises.
(e) This section shall not relieve the holder of a brandy manufacturer’s license of any civil or criminal liability arising out of a violation of Section 25602.

SEC. 2.

 Section 25503 of the Business and Professions Code is amended to read:

25503.
 No manufacturer, winegrower, manufacturer’s agent, California winegrower’s agent, rectifier, distiller, bottler, importer, out-of-state beer manufacturer certificate holder, or wholesaler, or any officer, director, or agent of any such person, shall do any of the following:
(a) Directly or indirectly, deliver the possession of any alcoholic beverages to any on- or off-sale licensee under an agreement of consignment whereby title to the alcoholic beverages is retained by the seller or whereby the licensee receiving the alcoholic beverages has the right at any time prior to sale to relinquish possession to or return them to the original seller.
(b) Directly or indirectly, give any licensee or any person any alcoholic beverages as free goods as a part of any sale or transaction involving alcoholic beverages.
(c) Give secret rebates or make any secret concessions to any licensee or the employees or agents of any licensee, and no licensee shall request or knowingly accept from another licensee secret rebates or secret concessions.
(d) Give or furnish, directly or indirectly, to any employee of any holder of a retail on-sale or off-sale license only anything of value for the purpose or with the intent to solicit, acquire, or obtain the help or assistance of the employee to encourage or promote either the purchase or the sale of the alcoholic beverage sold or manufactured by the licensee giving or furnishing anything of value, and any employee who accepts or acquires anything of value contrary to the provisions of this subdivision is guilty of a misdemeanor.
(e) Willfully or knowingly discriminate, in the same trading area, either directly or indirectly, in the price of any brand of distilled spirits sold to different retail licensees purchasing under like terms and conditions.
(f) Pay, credit, or compensate a retailer or retailers for advertising, display, or distribution service in connection with the advertising and sale of alcoholic beverages.
(g) Furnish, give, lend, or rent, directly or indirectly, to any person any decorations, paintings, or signs, other than signs advertising their own products as permitted by Section 25611.1.
(h) Pay money, provide credit, rebate, or give or furnish anything of value for the privilege of placing or painting a sign or advertisement, floor or window display, on or in any premises selling alcoholic beverages at retail.

SEC. 3.

 Section 25611.1 of the Business and Professions Code is amended to read:

25611.1.
 (a) Any manufacturer, winegrower, manufacturer’s agent, rectifier, distiller, bottler, importer, or wholesaler, or any officer, director, or agent of any of these persons may furnish, give, lend, sell, or rent:
(1) Interior signs, advertising either wine or distilled spirits, for use in on-sale retail premises, each of which shall not exceed 630 square inches in size. This limitation on the size of interior signs, advertising either wine or distilled spirits, shall not be applicable to off-sale retail premises.
(2) Interior signs advertising beer in on-sale or off-sale retail premises which shall bear conspicuous notice of the beer manufacturer’s name, brand name, trade name, slogans, markings, trademarks, or other symbols commonly associated with and generally used by the beer manufacturer in identifying the beer manufacturer’s name or product, and which may bear graphic or pictorial advertising representations. These signs shall include, but are not limited to, posters, placards, stickers, decals, shelf strips, wall panels, plaques, shadow boxes, mobiles, dummy bottles, bottle toppers, case wrappers, brand-identifying statuettes, tap markers, and table tents. These interior signs advertising beer shall not be deemed of intrinsic or utilitarian value and shall remain the property of the beer wholesaler who authorized and furnished them, unless given or sold to the retail licensee.
(3) Interior signs advertising beer for use in on-sale or off-sale retail premises, which are illuminated or mechanized, and which shall principally bear a conspicuous notice of the beer manufacturer’s name, brand name, trade name, slogans, markings, trademarks, or other symbols commonly associated with and generally used by the beer manufacturer in identifying the beer manufacturer’s name or product, and which may bear graphic or pictorial advertising representations. These illuminated or mechanized interior signs advertising beer shall not be deemed of intrinsic or utilitarian value and shall remain the property of the beer wholesaler who authorized and furnished them, unless given or sold to the retail licensee.
(4) Signs or other advertising matter for exterior use at any on-sale or off-sale retail premises as may be permitted by this division and rules of the department adopted pursuant thereto.
(b) Interior signs advertising beer that are customized for the retailer shall be sold by the wholesaler at a price not less than current market price.

SEC. 4.

 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.