California Legislature—2015–16 Regular Session

Assembly BillNo. 1303


Introduced by Assembly Member Gray

February 27, 2015


An act to amend Section 25503.24 of the Business and Professions Code, relating to alcoholic beverages.

LEGISLATIVE COUNSEL’S DIGEST

AB 1303, as introduced, Gray. Alcoholic beverages: tied-house restrictions.

Existing law, the Alcoholic Beverage Control Act, prohibits specified holders of alcoholic beverage licenses from having specified relationships with an on-sale alcoholic beverage licensee, with limited exceptions. Existing law permits a manufacturer, winegrower, rectifier, distiller, distilled spirits wholesaler, or any agent of those licenses, to conduct market research and, in connection with that research, to purchase from licensed off-sale retailers data, regarding purchases and sales of alcoholic beverage products, at the customary rates that those retailers sell similar data for nonalcoholic beverage products, provided that no licensed retailer shall be obligated to purchase or sell the alcoholic beverages of the manufacturer, winegrower, rectifier, or distiller. A violation of the Alcoholic Beverage Control Act is a misdemeanor, unless another penalty or punishment is specified.

This bill would additionally include a distilled spirits wholesaler in the provision prohibiting a licensed retailer from being obligated to purchase or sell the alcoholic beverages of the licensee conducting the market research.

Because the violation of this provision would be punishable as a misdemeanor, 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. State-mandated local program: yes.

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

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SECTION 1.  

Section 25503.24 of the Business and Professions
2Code
is amended to read:

3

25503.24.  

(a) Notwithstanding any other provision of this
4chapter, any manufacturer, winegrower, rectifier, distiller, distilled
5spirits wholesaler, or any officer, director, agent, or representative
6of any of those entities, may conduct market research and, in
7connection with that research, the entity conducting the market
8research may purchase from licensed off-sale retailers data
9regarding purchases and sales of alcoholic beverage products at
10the customary rates that those retailers sell similar data for
11nonalcoholic beverage products subject to the following limitations:

12(1) No licensed retailer shall be obligated to purchase or sell
13the alcoholic beverage products of that manufacturer, winegrower,
14rectifier,begin delete orend delete distillerbegin insert, or distilled spirits wholesalerend insert.

15(2) No retail premises shall participate in more than one research
16project conducted by any single manufacturer, winegrower,
17rectifier, distiller, or distilled spirits wholesaler during a calendar
18year. A research project may involve multiple onsite surveys.

19(3) Nothing in this section shall allow a licensed retailer to
20require a manufacturer, winegrower, rectifier, distiller, or distilled
21spirits wholesaler to conduct any market research as a condition
22for selling alcoholic beverage products to that licensed retailer.

23(b) Any holder of a beer manufacturer’s license or winegrower’s
24license who, through coercion or other illegal means, induces,
25directly or indirectly, a holder of a beer or wine wholesaler’s
26license to fulfill obligations entered into pursuant to subdivision
27(a) shall be guilty of a misdemeanor and shall be punished by
28imprisonment in the county jail not exceeding six months, or by
29a fine in an amount equal to the entire value of the market research
30or time involved in the project, whichever is greater, plus ten
P3    1thousand dollars ($10,000), or by both imprisonment and fine. The
2person shall also be subject to license revocation pursuant to
3Section 24200.

4(c) Any retail licensee who, directly or indirectly, solicits or
5coerces a holder of a beer or wine wholesaler’s license to solicit
6a beer manufacturer, or holder of a winegrower’s license to fulfill
7obligations entered into pursuant to subdivision (a) shall be guilty
8of a misdemeanor and shall be punished by imprisonment in the
9county jail not exceeding six months, or by a fine in an amount
10equal to the entire value of the market research or time involved
11in the project, whichever is greater, plus ten thousand dollars
12($10,000), or by both imprisonment and fine. The person shall also
13be subject to license revocation pursuant to Section 24200.

14(d) For the purposes of this section, “beer manufacturer”
15includes any holder of a beer manufacturer’s license, any holder
16of an out-of-state beer manufacturer’s certificate, or any holder of
17a beer and wine importer’s general license.

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SEC. 2.  

No reimbursement is required by this act pursuant to
19Section 6 of Article XIII B of the California Constitution because
20the only costs that may be incurred by a local agency or school
21district will be incurred because this act creates a new crime or
22infraction, eliminates a crime or infraction, or changes the penalty
23for a crime or infraction, within the meaning of Section 17556 of
24the Government Code, or changes the definition of a crime within
25the meaning of Section 6 of Article XIII B of the California
26Constitution.



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