AB1425 Full Text
BILL NUMBER: AB 1425 CHAPTERED
FILED WITH SECRETARY OF STATE OCTOBER 1, 2013
APPROVED BY GOVERNOR OCTOBER 1, 2013
PASSED THE SENATE SEPTEMBER 12, 2013
PASSED THE ASSEMBLY SEPTEMBER 12, 2013
AMENDED IN SENATE SEPTEMBER 6, 2013
INTRODUCED BY Committee on Governmental Organization (Hall (Chair),
Nestande (Vice Chair), Chesbro, Cooley, Gray, Hagman, Jones,
Jones-Sawyer, Levine, Perea, V. Manuel P�rez, Salas, Torres, and
MARCH 21, 2013
An act to amend Sections 23055, 23356.2, 23356.8, 23356.9, and
25503.31 of the Business and Professions Code, relating to alcoholic
LEGISLATIVE COUNSEL'S DIGEST
AB 1425, Committee on Governmental Organization. Alcoholic
(1) Under existing law, the Alcoholic Beverage Control Act is
administered by the Department of Alcoholic Beverage Control.
Existing law requires the department to make an annual report to the
Legislature on the department's activities, on or before March 1 of
This bill would require the department to post the report on its
Internet Web site.
(2) Existing law authorizes a person to manufacture beer or wine
for personal or family use without the need for a license or permit,
as provided. Existing law authorizes the removal of beer from the
premises where made for use in competition at organized affairs,
exhibitions, or competitions. Existing law authorizes the removal of
wine from the premises where made, for use at organized affairs,
exhibitions, or competitions, including homemakers' contests,
tastings, or judgings, and prohibits that wine from being sold or
offered for sale.
This bill would revise the limitations on the use of beer and wine
produced under the above-described circumstances, to authorize these
products to be removed from the premises where made only when used
in a bona fide competition or exhibition, for personal or family use,
or when donated to a nonprofit organization for sale at a
fundraising event, excluding nonprofit organizations that either
promote home brewing or home winemaking or that are primarily
composed of home brewers or home winemakers, as specified. The bill
would require beer or wine donated to a nonprofit organization under
the bill to be labeled with designated information, and would
otherwise exempt it from complying with existing labeling
(3) Existing law prohibits a licensed wine blender from owning or
holding, directly or indirectly, a retailer's license. Existing law
also provides that a wine blender's license does not authorize
specified wine tasting activities.
This bill would remove obsolete references from these provisions.
(4) Existing law, until December 1, 2014, authorizes a beer
manufacturer, holder of a winegrower's license, a California
winegrower's agent, a distilled spirits manufacturer, holder of a
distilled spirits rectifiers general license, a distilled spirits
manufacturer's agent, and a licensed retailer to make monetary or
alcoholic beverage contributions to a symphony association, as
specified. 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 delete the repeal of this provision, thereby
authorizing these types of contributions indefinitely. By extending
the imposition of an existing crime, this bill imposes 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
This bill would provide that no reimbursement is required by this
act for a specified reason.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 23055 of the Business and Professions Code is
amended to read:
23055. On or before March 1 of each year, the director shall
prepare and submit to the Legislature an annual report on the
department's activities and post the report on the department's
Internet Web site. The report shall include, but not be limited to,
the following information for the previous fiscal year:
(a) The amount of funds allocated and spent by the department for
licensing, enforcement, and administration.
(b) The number of licenses issued, renewed, denied, suspended, and
revoked, by license category.
(c) The average time for processing license applications, by
(d) The number and type of enforcement activities conducted by the
department and by local law enforcement agencies in conjunction with
(e) The number, type, and amount of penalties, fines, and other
disciplinary actions taken by the department.
SEC. 2. Section 23356.2 of the Business and Professions Code is
amended to read:
23356.2. (a) No license or permit shall be required for the
manufacture of beer or wine for personal or family use, and not for
sale, by a person over 21 years of age. The aggregate amount of beer
or wine with respect to any household shall not exceed (1) 200
gallons per calendar year if there are two or more adults in the
household or (2) 100 gallons per calendar year if there is only one
adult in the household.
(b) Beer or wine produced pursuant to this section may be removed
from the premises where made only under any of the following
(1) For use, including tasting by judges, in a bona fide
competition or exhibition.
(2) For personal or family use.
(3) When donated to a nonprofit organization for use as provided
in subdivision (c).
(c) (1) Beer or wine produced pursuant to this section may be
donated to a nonprofit organization for sale at fundraising events
conducted solely by and for the benefit of the nonprofit
organization. Beer and wine donated pursuant to this subdivision may
be sold by the nonprofit organization only for consumption on the
premises of the fundraising event, under a license issued by the
department to the nonprofit organization pursuant to this division.
(2) Beer or wine donated and sold pursuant to this subdivision
shall bear a label identifying its producer and stating that the beer
or wine is homemade and not available for sale or for consumption
off the licensed premises. The beer or wine is not required to comply
with other labeling requirements under this division. However,
nothing in this paragraph authorizes the use of any false or
misleading information on a beer or wine label.
(3) A nonprofit organization established for the purpose of
promoting home production of beer or wine, or whose membership is
composed primarily of home brewers or home winemakers, shall not be
eligible to sell beer or wine pursuant to this subdivision.
(d) Except as provided in subdivision (c), this section does not
authorize the sale or offering for sale by any person of any beer or
wine produced pursuant to this section.
(e) Except as provided herein, nothing in this section authorizes
any activity in violation of Section 23300, 23355, or 23399.1.
SEC. 3. Section 23356.8 of the Business and Professions Code is
amended to read:
23356.8. A licensed wine blender shall not be issued and shall
not own or hold, directly or indirectly, any retailer's license, nor
shall the holder of a retailer's license be issued or own or hold,
directly or indirectly, a wine blender's license, or own or hold any
interest in a wine blender's license.
SEC. 4. Section 23356.9 of the Business and Professions Code is
amended to read:
23356.9. A wine blender's license does not authorize winetasting
activities or the conducting or sponsoring of wine tastings either on
or off the wine blender's licensed premises.
SEC. 5. Section 25503.31 of the Business and Professions Code is
amended to read:
25503.31. (a) Notwithstanding any other provision of this
division, a beer manufacturer, holder of a winegrower's license, a
California winegrower's agent, a distilled spirits manufacturer,
holder of a distilled spirits rectifiers general license, a distilled
spirits manufacturer's agent, and a licensed retailer may make
monetary contributions or alcoholic beverage contributions of the
type that licensee is authorized to sell to a symphony association,
if all the following conditions are met:
(1) The symphony association is a nonprofit charitable corporation
or association exempt from payment of income taxes under the
provisions of the Internal Revenue Code of the United States and
Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of
the Revenue and Taxation Code.
(2) The symphony association has been incorporated in the City and
County of San Francisco by and through its predecessor organizations
for not less than 99 years and produces not less than 175 musical
events open to the general public per symphony season.
(3) The symphony association holds a retail on-sale license in a
portion of its premises, provided that no contribution shall be used
in or for the benefit of the symphony association's retail on-sale
(4) The contribution shall not be conditioned directly or
indirectly, in any way, on the purchase, sale, or distribution of any
alcoholic beverage manufactured or distributed by the beer
manufacturer, holder of a winegrower's license, California winegrower'
s agent, distilled spirits manufacturer, holder of a distilled
spirits rectifiers general license, a distilled spirits manufacturer'
s agent, or a licensed retailer by the symphony association.
(b) The symphony association shall serve other brands of beer
distributed by a competing beer wholesaler in addition to the brand
manufactured or marketed by the contributing beer manufacturer, other
brands of wine distributed by a competing wine wholesaler in
addition to the brand produced or marketed by the contributing
winegrower or California winegrower's agent, and other brands of
distilled spirits distributed by a competing distilled spirits
wholesaler in addition to the brand manufactured or marketed by the
contribution distilled spirits manufacturer or distilled spirits
(c) For purposes of this section, "beer manufacturer" includes a
holder of a beer manufacturer's license, a holder of an out-of-state
beer manufacturer's certificate, or a holder of a beer and wine
importer's general license.
(d) 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 exceptions
established by this section to the general prohibition against tied
interests must be limited to their express terms so as not to
undermine the general prohibition, and intends that this section be
SEC. 6. 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