Bill Text: CA AB2004 | 2013-2014 | Regular Session | Chaptered


Bill Title: Alcoholic beverage sales: beer manufacturers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-09-29 - Chaptered by Secretary of State - Chapter 806, Statutes of 2014. [AB2004 Detail]

Download: California-2013-AB2004-Chaptered.html
BILL NUMBER: AB 2004	CHAPTERED
	BILL TEXT

	CHAPTER  806
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2014
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2014
	PASSED THE SENATE  AUGUST 18, 2014
	PASSED THE ASSEMBLY  AUGUST 28, 2014
	AMENDED IN SENATE  AUGUST 13, 2014
	AMENDED IN SENATE  AUGUST 6, 2014
	AMENDED IN SENATE  JUNE 25, 2014
	AMENDED IN SENATE  JUNE 15, 2014

INTRODUCED BY   Assembly Member Chesbro

                        FEBRUARY 20, 2014

   An act to amend Section 23357 of, and to add Section 23399.45 to,
the Business and Professions Code, relating to alcoholic beverages.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2004, Chesbro. Alcoholic beverage sales: beer manufacturers.
   (1) Existing law, the Alcoholic Beverage Control Act, authorizes a
licensed beer manufacturer, at the licensed premises of production,
to sell to consumers for consumption off the premises beer that is
produced and bottled by, or produced and packaged for, that
manufacturer and, among other things, to sell beer and wine,
regardless of source, to consumers for consumption at a bona fide
public eating place on the manufacturer's licensed premises or
contiguous to it, as specified. The act provides that a violation of
its provisions is a misdemeanor unless otherwise specified. Existing
law provides that moneys collected as fees pursuant to the act are to
be deposited in the Alcohol Beverage Control Fund. These moneys are
generally allocated to the Department of Alcoholic Beverage Control
upon appropriation by the Legislature.
   This bill would authorize a beer manufacturer to have upon the
premises, as specified, all beers and wines, regardless of source,
for sale or service to guests during private events or private
functions not open to the general public. The bill would require the
beer manufacturer to purchase alcoholic beverages sold at the
premises that are not produced and bottled by, or produced and
packaged for, the beer manufacturer from a licensed wholesaler, as
specified. Because a violation of a provision of a license is a
misdemeanor and this bill would increase activities permitted
pursuant to the license, subject to specified requirements, this bill
would expand the definition of a crime and would impose a
state-mandated local program.
   (2) Existing law authorizes a licensed winegrower to apply to the
Department of Alcoholic Beverage Control for a certified farmers'
market sales permit, which allows the licensee, a member of the
licensee's family, or an employee of the licensee to sell wine
produced and bottled by the winegrower at certified farmers' market
locations, under specified conditions.
   This bill would authorize a licensed beer manufacturer to apply to
the Department of Alcoholic Beverage Control for a certified farmers'
market beer sales permit, which would allow the licensee, a member
of the licensee's family who is 21 years of age or older, or an
employee of the licensee to sell packaged beer that has been
manufactured by the beer manufacturer at certified farmers' market
locations, under specified conditions. Among other things, the bill
would prohibit a licensee from selling more than 5,000 gallons of
beer annually pursuant to all certified farmers' market beer sales
permits held by the beer manufacturer and would require the licensee
to pay a fee of $50 for the permit. Because the violation of a
provision of a license is punishable as a misdemeanor and the bill
would create a new category of license, the bill would expand the
definition of a crime, thereby imposing a state-mandated local
program.
   (3) 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.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 23357 of the Business and Professions Code is
amended to read:
   23357.  (a) A licensed beer manufacturer may, at the licensed
premises of production, sell to consumers for consumption off the
premises beer that is produced and bottled by, or produced and
packaged for, that manufacturer. Licensed beer manufacturers may also
exercise any of the following privileges:
   (1) Sell that beer to any person holding a license authorizing the
sale of beer.
   (2) Sell that beer to consumers for consumption on the
manufacturer's licensed premises or on premises owned by the
manufacturer that are contiguous to the licensed premises and which
are operated by and for the manufacturer.
   (3) Sell beer and wine, regardless of source, to consumers for
consumption at a bona fide public eating place on the manufacturer's
licensed premises or at a bona fide public eating place on premises
owned by the manufacturer which are contiguous to the licensed
premises and which are operated by and for the manufacturer.
   (b) Notwithstanding any other provision of this division, licensed
beer manufacturers and holders of out-of-state beer manufacturer's
certificates may be issued and may hold retail package off-sale beer
and wine licenses. Alcoholic beverage products sold at or from the
off-sale premises that are not produced and bottled by, or produced
and packaged for, the beer manufacturer shall be purchased by the
beer manufacturer only from a licensed wholesaler.
   (c) Notwithstanding any other provision of this division, a
licensed beer manufacturer that produces more than 60,000 barrels of
beer a year may manufacture cider or perry at the licensed premises
of production and may sell cider or perry to any licensee authorized
to sell wine. For purposes of this subdivision, "cider" and "perry"
have the meanings provided in Section 4.21(e)(5) of Title 27 of the
Code of Federal Regulations. This subdivision does not alter or amend
the classification of cider or perry as wine for any purpose other
than that provided by this section.
   (d) A beer manufacturer may also have upon the licensed premises,
or on premises owned by the manufacturer that are contiguous to the
licensed premises and are operated by and for the manufacturer all
beers and wines, regardless of source, for sale or service only to
guests during private events or private functions not open to the
general public. Alcoholic beverage products sold at the premises that
are not produced and bottled by, or produced and packaged for, the
beer manufacturer shall be purchased by the beer manufacturer only
from a licensed wholesaler. All alcoholic beverages sold or served
shall be produced by a licensee authorized to manufacture the
product.
  SEC. 2.  Section 23399.45 is added to the Business and Professions
Code, to read:
   23399.45.  (a) For the purposes of this section:
   (1) "Certified farmers' market" means a location operated in
accordance with Chapter 10.5 (commencing with Section 47000) of
Division 17 of the Food and Agricultural Code.
   (2) "Community event" means an event as defined by Section 113755
of the Health and Safety Code.
   (b) A licensed beer manufacturer may apply to the department for a
certified farmers' market beer sales permit. Subject to the
requirements of Chapter 10.5 (commencing with Section 47000) of
Division 17 of the Food and Agricultural Code, and to the discretion
and managerial control of a certified farmers' market or community
event operator, respectively, a certified farmers' market beer sales
permit shall authorize the licensee, a member of the licensee's
family who is 21 years of age or older, or an employee of the
licensee to sell packaged beer that has been manufactured by a beer
manufacturer applying for the permit at a certified farmers' market,
including any permitted community event area adjacent to, and
operated in conjunction with, a certified farmers' market, located
within the county or an adjacent county of the physical location of
the licensed beer manufacturer.
   (c) Sales under the certified farmers' market beer sales permit
shall only occur at a certified farmers' market or within a permitted
community event area adjacent to, and operated in conjunction with,
the certified farmers' market that is located within the same county
or adjacent county of the location of the licensed beer manufacturer'
s manufacturing facility. The permit may be issued for up to 12
months but shall not be valid for more than one day a week at any
single specified certified farmers' market or community event
location. A beer manufacturer may hold more than one permit. The
department shall notify the city, county, or city and county and the
applicable law enforcement agency where the certified farmers' market
or permitted community event is to be held of the issuance of the
permit.
   (d) The licensed beer manufacturer eligible for the certified
farmers' market beer sales permit shall not sell more than 5,000
gallons of beer annually pursuant to all certified farmers' market
beer sales permits held by any single beer manufacturer. The licensed
beer manufacturer shall maintain records of annual beer sales made
pursuant to all certified farmers' market beer sales permits issued.
   (e) The fee for any permit issued pursuant to this section shall
be fifty dollars ($50), subject to adjustment pursuant to
subdivisions (b) and (c) of Section 23320.
   (f) All money collected as fees pursuant to this section shall be
deposited in the Alcohol Beverage Control Fund as provided in Section
25761.
  SEC. 3.   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.                        
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